Why is Strategic Pricing(R) so important to a bid?
Most contractors approach Strategic Pricing(R) like it is an afterthought. It is not if you want to win. Plain and simple there can be nothing more important to a proposal than the pricing. Because pricing too often is a deciding factor in a win, (even if it is low price technically acceptable) it makes sense that it should take center stage. Rather than the approach which too many contractors take “Now that we have finished the technical response, let’s get the pricing done,” choose to do what makes sense. Get a Strategic Pricing(R) approach as part of the capture process.
Strategic Pricing(R) Plan
We often hear that a contractor must win an opportunity. However, the focus on developing a Strategic Pricing(R) plan is left to the end and without much thought about what will get the price to the right target. If money is everything to a bid, and it is, then devote your attention to your Strategic Pricing(R). To think money is not important is foolhardy. What is your process for establishing Strategic Pricing(R) in your organization? Here are the three most important Strategic Pricing(R) processes.
Strategic Pricing(R) Processes
First, start early. Engage the pricing team in the capture stage. That means you start your Strategic Pricing(R) planning and actions before the RFP comes out. Otherwise, you began too late.
Second, engage the entire pricing team. This includes pricing specialists, outside consulting for the price to win, competitive assessment, and pricing strategists, along with the finance and accounting staff, capture team, proposal team, human resources, and procurement – add these people to the executive management team to bring in the importance of pricing to the forefront.
Third, begin assessing the deliberate choices you have to consider and the long lead items necessary to dig into the details. Be generous in choosing all the elements necessary to make an informed decision.
If you do just these three actions, you will be ahead of your competition.
Resources:
LinkedIn: https://www.linkedin.com/in/marshalindquist1/
LinkedIn Corporate: https://www.linkedin.com/company/granite-leadership-strategies/?viewAsMember=true