As a tender writer, I'm often asked for help in pricing the bid and while I can discuss pricing strategies with you, when it comes to the price you want to put forward, I can't tell you what a winning price looks like. You know your business, your operating costs and who your competitors are, so no one is in a better position than you to understand your market and your cost model.
What I can help you with though are a few simple tips so you understand the most important issues when it comes to price.
- Make sure you've read the tender pricing response table and understand what it is the tender issuer is looking for. This may sound simple but I've worked with loads of clients who think they can put forward a whole of contract price when the tender response is asking for this to be broken down into labour cost hourly rates, material costs and guaranteed mark-ups on certain services. If the price you put forward doesn't meet the pricing response criteria you'll be dead in the water before the rest of your tender is read.
- If you don't think you can win it, don't waste your time and effort bidding for it. Again it might be a blinding flash of the bleeding obvious, but if the tender isn't a good fit for your business, the most competitive pricing in the world isn't going to win it for you.
- Always highlight any value-add that comes with your price, even if it's something simple. Whether it's half price food at the end of the day for a catering business or some extra spit and polish for a cleaning business, if there's something else you can add that's included in the price then shout it from the rooftops.
- Explain your pricing. Some tender response schedules are as clear as, well, mud. It may be that the tender issuer doesn't really understand the business you're in, or it may be an error so it's always a good idea to clarify anything that doesn't look right. Then make sure you explain anything that the price depends on - so if you're bidding for work at 7 out of 10 sites for example, your response should clearly state that the price is based on you winning the bid for all 7 sites.
- Check if the pricing is required including or excluding GST. It's a simply thing but if you get it wrong you could lose the bid because your pricing is 10% higher than you meant it to be or you could win the bid and instantly lose 10% of your profit margin.
Need a hand with your bid? Give Pauline a call on 0400 514579 for a chat about the best strategy to create a winning tender submission.