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The bid manager’s guide to pricing your products and services

One of the most common things which any bid manager will hear, upon requesting feedback on why a bid failed, is ‘We made a decision based upon price’. While this may be simply an excuse in some cases, as a way of avoiding going in to an in-depth discussion relating to the evaluation process, it could also be the truth for many bids.

Tender writing for the public sector, in particular, means that pricing is a huge consideration when you submit your bid to the evaluators. Public sector buyers are usually under an obligation to choose the most competitively priced service providers when they are assessing bids, and this criterion can be a hard one to overcome if you are pricing above the rates set by your competitors. Unless the benefits of your bid are provided in such a way as to demonstrate a value which transcends your financial summary, you are unlikely to get past the first cut when it comes to having your bid go through to a successful qualification stage.

Despite the pitfalls associated with pricing your goods or services, there are a number of things which you can do as a savvy bid manager in order to mitigate your pricing and make your evaluators sit up and take notice. The way you decide to set your price depends upon a number of factors:

  • What are your competitors going to charge? Can you undercut them?
  • Do you have a strong indication of what your solution will cost to provide? Are you in a good position to find effective ways of reducing costs in order to cope with a long-term contract?
  • Are you expected to provide any discounts for the long continuation of a contract with your customer?
  • What kind of discount should you be offering for large contracts which bring your organisation a great deal of business?
  • Are you able to mitigate some of your costs through the actual value of securing a lucrative bid? Are there any factors such as enhanced credibility or brand awareness which will bring you value through gaining the contract?

Sometimes, as a bid manager, it’s worth calculating how you can ‘take a hit’ to your financial strategy in order to win the contract. Think of what you have to gain by securing the deal, and whether or not you can afford to cut your prices in this instance, in order to reap the benefits of the deal. Remember that this is exactly what your competitors will be doing!

Bid Management Articles

The bid manager’s guide to work/life balance (2)

You know the feeling – you have eight bids on the go, all due by the end of the week. Cold coffee is the main thing you can sense, other than the extreme exhaustion that renders you almost incapable of making decisions. You can’t remember when you saw your family last, and all they have seen of you over t he past few weeks is a snappy, exhausted person who comes through the door late at night, kicks off their shoes and grabs some sleep before heading back to the office for six a.m.

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Understanding the bid management process

Storyboarding, stakeholder engagement, content collation, competitor analysis…there are so many elements to the bid management role that it can be easy to become overwhelmed when it comes to pulling together an outstanding proposal for your organisation. Although the bid management process can vary from company to company, essentially the guidelines and methodology behind the creation of bids are based upon a universally-agreed best practice model.

Read More >>

The bid manager’s guide to work/life balance

You know the feeling – you have eight bids on the go, all due by the end of the week. Cold coffee is the main thing you can sense, other than the extreme exhaustion that renders you almost incapable of making decisions. You can’t remember when you saw your family last, and all they have seen of you over t he past few weeks is a snappy, exhausted person who comes through the door late at night, kicks off their shoes and grabs some sleep before heading back to the office for six a.m.

Read More >>

The Bid Manager’s guide to quoting for a tender

One of the toughest decisions for any bid management team or bid writer is establishing an accurate and effective pricing strategy. More than ever in today’s economic climate, organisations are considering the efficacy of bid responses with a strong focus upon pricing, as budgets tend to be tight and everyone is seeking maximum value for minimum cost.

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The bid manager’s guide to pricing your products and services

One of the most common things which any bid manager will hear, upon requesting feedback on why a bid failed, is ‘We made a decision based upon price’. While this may be simply an excuse in some cases, as a way of avoiding going in to an in-depth discussion relating to the evaluation process, it could also be the truth for many bids.

Read More >>

The benefits of public sector opportunities for bid managers

The public sector spends a huge amount each year and is always looking for new suppliers. This is great news for organisations looking to increase their customer base and generate further revenue through the pursual of public sector opportunities. No matter what size your organisation is, it’s definitely worth trying to win bids within this sector, as there are a wealth of opportunities if you develop a compelling document.

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Delivering your bid on time: The bid manager’s guide

Let’s be honest. Which of us bid managers haven’t found ourselves up against the wall, timewise, when it comes to getting a proposal document to our customer on time? With the best possible preparation, anticipation of risks and milestone mapping, we all of us have times as bid managers when we are forced to go all out to deliver a compliant bid at the last minute.

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Bid management basics

Bid management is a thriving profession, with more and more organisations realising the benefits of procuring sales through an effective and efficient bid team. Supporting the bid writer to produce compliant and compelling documents, and liaising with the sales force, the bid manager role carries a wealth of challenges when it comes to co-ordinating the overall tender process and working to procure winning contracts on behalf of the company.

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Bid Management – Working out when to bid

In a busy bid environment, many companies can find themselves besieged by invitations to tender from all of their customers. With most of us only having finite resource on hand to respond to tender requests, it can be difficult to decide which of the many opportunities we should be responding to. Part of the bid management process is considering how best to allocate resource can be difficult, as the criteria for going for a particular bid does not always come down to the financial rewards available.

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Bid Management – Mapping the sales process

Bid managers and bid writers know that if your bid management process has an ineffective sales process component, it can result in a huge amount of dithering and procrastination before your organisation can reach a bid/no bid decision. Having a well-understood and established sales process map as part of your bid management process ensures that the right people are engaged with the activities from the outset.

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Bid Management – Knowledge management for bid writers

Bid Management. In any organisation, there is a wealth of information being passed around, shared, utilised or archived, every day. Each team within a company has a specific specialism, and the people who work within the team are experts in their particular niche of the organisation’s overall function. This means that on any given day, thousands of words, images and concepts are bandied around, to be picked up by people and used, or simply filed away for future reference.

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