Articles - How to Win Tenders By Right Pricing Strategy
People who talk about the tendering market being competitive are often using their general list price levels in their tender, which usually have these additional costs built in.
The only real marketing cost associated to a tender is the preparation of the tender response itself and in many cases the bulk of this can be standardized.
Pricing the Services
Where a service is being offered, a similar technique to product pricing can be determined if the service is broken down into clear units. For example, tiling can be broken down to a square meter price. If your current pricing schedule for service is not clearly defined to units, it could be a very worth while exercise to calculate these figures to get a better indication of what profits are really being made when selling to the general public. If you are serious about tendering your pricing will need to be very accurate. It would not be ideal to win a tender to find out it was not profitable.
If you have any doubts about your current pricing structure and future tender pricing structure, a cost accounting firm is going to be an excellent resource to use.
Remember, once your tender price is clearly established, it can be constantly reused to respond to several tenders.
Tips on Pricing
It is important to consider some guidelines when preparing your tender price.They include:
Always submit your lowest possible price for the service. If you wish to provide additional services then offer separate price for the extra service.
Your price should make you a reasonable profit. You may in some tender decide to reduce your margin and break even. You may even make a small loss if you have other objectives. These could be to keep a team together during difficult times, or using the project simply for marketing purposes. Be careful about putting in loss making tenders. The costs may not be worth the risk.
Aim to meet or exceed your client's price objectives. That is, try to submit a lower price than your client expects. You may even try to do the job in less time, or do it faster, or with fewer resources than your client expects.
Try to avoid a single fixed price. This may b difficult particularly if the client has included a price schedule that requires a single fixed price. You should then include a price menu that details prices under various conditions.
Ensure the price of cost schedule has been completed against all items for which you wish to tender.
If you are dealing with a product, which is exceptionally good or difficult to maintain for the period of warranty, take care of margin before giving your required price.
All rates should be quoted in English, both in figures as well as in words in the schedule of rates in such a way that manipulation is not possible.
Consider all tax related issues carefully before arriving at final price.
Pay extra attention to factors like delivery on F.O.R or F.O.B basis, octroi paid or to be paid basis, transit insurance, etc.
If it is important item, take currency fluctuations/custom duty, etc. in account.
Remember if you are a regular visitor of www.tenderserviceonline.com you can get many more useful tips on tendering.
Related Tags: business tips, pricing strategy, te, tendering, profit tips pricing, wining tenders, tender business, tender information, tender service, tender alert
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Current Affairs Articles - Obama on Ground Zero Mosque: Rights for Muslims, Tough Luck for Americans
Only a few short months after snubbing the National Day of Prayer President Obama continued his war - Spiritual Articles - After Armageddon
When we look back through the smoke filled skies of a nuclear winter where all is gone except the fe - Current Affairs Articles - America and the Doctrine of the Last Chance
The History Channel cooks up a nice pot of Nostradamus and eschatological soup with their multi epis - Video Games Articles - A better way to get the most value for your used games.
As players, we usually trade-in our used games in store (Gamestop/EB) and buy used ones from them. - Business Articles - Know About Different Benefits of Sharepoint Administration
Share-point is a platform where people can work together very easily. By using sharepoint administra - Current Affairs Articles - Obama Courts Latino Votes at Arizona's Expense
Every time the President speaks, makes another appointment or ramrods a new bill through the democra - Spiritual Articles - Are You Religious Bigot? Take the Quiz!
This quiz is for fun, and although some of the questions will make you stop and think, please don't - Import - Export Articles - How to get Windows XP driver updates-5
Getting driver updates for an individual's laptop or computer with Windows XP operating system const - World News Articles - HGH Facts - Health benefits and also Side Effects for HGH
Human growth hormone is really a normal occurring hormone that's made within the body which controls - World News Articles - Finding A Thinning Hair Treatment That Works
Trying to acquisition a abrasion beard analysis that re-grows new affection beard is appropriate up
Most viewed articles in this category:
- Doughnut Hole Expected to Grow
A recent report in the USA Today, reported that the gap in the current Medicare coverage commonly re - Human Globalization
Activity in the sense, the central component of globe, we humans have been showing activeness bo - Writing Abilities Development
It has been proved that writing abilities can be developed together with inspiration. A thought - Snowboarding Tricks 101
I like the floating feeling you get on quarterpipes, it feels like you're hanging in the air and you - Russian Expansion To The Middle East
The period of the Cold War created an excellent opportunity to expand Soviet Union influence. On - Girl Tattoos Tell You Lots About The Girl
How often, when admiring girl tattoos have you said - It suits you? It happens a lot with girls - How to support charities In your Local Area By Getting Involved
Charities are created to help people find ways of dealing with situations that can't be solved i - Christian Sex - 7 Barriers to Fulfilling Married Sexuality
Many Christian married couples have yet to experience a fulfilling sexuality. Yet, it is an essent - Tales of New York
A Bronx Tale deals with bringing up children in a big city, dangers of gangster life, and stereo - Universal Civilization
Early civilizations of the world were divided and isolated by geographical locations and boundar