Undertaking a Pricing to Win Analysis

On September 15, 2010, Mr. Jon Boyle of Unisys, Inc. 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.  In his presentation, he discussed how to undertake a pricing to win analysis.

According to Boyle, companies should perform a pricing to win analysis prior to developing a pricing proposal.  If they do not, they are likely to submit a weak price proposal because their pricing figures either will not be competitive or they will be unresponsive to the government agency’s concerns or policies.

You can perform a pricing to win analysis wherever there is a cost element.   Examples would include a labor rate analysis and a unit pricing analysis.

However, performing a pricing to is most effective for the following topics:

  • Labor rates.
  • Services.
  • IDIQ (Indefinite Delivery/Indefinite Quantity) bid ranges.
  • Contracts where low cost is very important.
  • Bids with weak or new government clients.
  • Clients that traditionally emphasize low cost.

By undertaking a price to win analysis early in the proposal development process, you can improve the competitiveness of your proposal, safeguard your company from bad contracts, and help your company to remain profitable.

In other words, the goal of using a price to win analysis is not to arrive at the lowest price.  It is to arrive at a price that will enable your company to win government contracts and fulfill its mission.

3 Comments

  1. Evancho Jackie
    October 6, 2010

    You are posting recent blog entries on twitter as well? If so I would like to know your account, so I can follow you there and be informed.

    Reply
  2. website
    May 27, 2012

    This blog is very cool! How can I make one like this ?

    Reply
    • TheProposalGuru
      June 2, 2012

      Thanks for your kind words. Contact me by e-mail and I will give you some advice.

      Reply

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