Pricing to Win

On September 15, 2010, Mr. Jon Boyle of Unisys gave an excellent presentation at the National Capital Area Chapter of the Association of Proposal Management Professionals on a very important topic – pricing to win.

According to Boyle, there are sound strategic and tactical reasons for focusing on pricing to win in government contracts.  His strategic and tactical reasons are listed below.

Strategic

  • Focuses the proposal team on winning.
  • Discourages routine thinking.
  • Leads to a more competitive offering.
  • Validates and strengthens internal pricing.
  • Helps with the bid/no bid decision.
  • Helps safeguard the company and mitigate risk.

Tactical

  • Provides a competitive price range.
  • Enables you to understand the competitive price point needed to win.
  • Identifies the areas where you need to be more competitive.
  • Provides an internal price check.
  • Enables you to complete where there is a return on investment.
  • Invigorates the proposal team.

At the very beginning of the proposal development process, Boyle sensibly suggests posing a set of pricing questions to help you make a sound bid/no bid decision.  They are:

Can we bid a high price and win?

What is our price to win – low, medium, or high?

How will we arrive at a price to win?

Are we pricing to the Request for Proposals?

What is our change order strategy?

Have we made a FOIA (Freedom of Information Act) request to gather as much pricing and other information on the incumbent as possible?

If you are interested in developing a competitive pricing proposal, this is a very logical and thorough way to begin.

1 Comment

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    February 29, 2012

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