The production of tenders is rarely a simple process, with a significant amount of documentation to complete and submit in a short period of time. Tendering is both a price competitive and value competitive process, with the effects of the economic downturn meaning that more and more organisations are offering to do more and more for less and less.
How do you compete in such an environment? Price competition alone? Value based pricing? It’s a difficult question to answer as the answer will be dependent upon a whole range of circumstances that aren’t capable of being answered here.
What is certain though, is that you must have a clear understanding of your cost base and have it firmly under control. That way you are able to assess the cost base of the work and arrive at a tender price based upon “cost plus margin” if you need to. Value based pricing is a better alternative, but again you need to ensure you have a full understanding of your cost base and the value you bring. This will allow you to consider value based pricing and have an increasing level of control over the margins you expect to make.
Only by having a through understanding of your cost base will you be able decide on the best pricing model to use in tenders you submit. Using the techniques referred to in products and services we are able to review your cost base and advise upon tender pricing in general and for specific tenders you may be looking to submit.
For an initial discussion call George Watts on 01302 842831 or use our contact page