Join pricing consultant Greg Eyres and I for a free 30-minute webinar on Thursday 13 June 1.00pm (AEST) and find out how to use Evidence-Based Bid Pricing as a powerful strategic weapon to build more successful bids. Customers will spend if they get value in return. However, according to bid pricing specialist Greg Eyres of Inforvalue, most organisations have a bid pricing model that doesn’t consider value at all. “Your bid price speaks volumes about your company but the task of pricing is usually approached with a great deal of nervousness,” Eyres says.
Are you nervous about bid pricing? If you aren’t, maybe you should be. There’s a very good chance that your pricing methodology is losing you bids and is also leaving money on the table that could have been yours, had you advocated for it. Some of the telltale signs that your bid pricing model needs an overhaul:
- You’re making a "guesstimate" of all your costs, adding on a margin and hoping for the best.
- You tend to leave pricing to the day before the deadline.
- You’re always revising and whittling away at your price as a result of late information.
- Your sales and finance teams constantly lock horns, with one advocating for what the customer will pay and the other insisting on cost recovery.
“Customers will pay when they perceive they get more benefit than they pay for - in other words, where the value justifies the price,” says Eyres. "A tendering environment, by its very nature, gives you the opportunity to get to these value drivers. During the tendering period, you have the ability to communicate regularly with the customer and to get a detailed understanding of their business model. Through this, you can determine how you can affect the customer's ability to create value for its own customers and/or reduce its own costs. This not only gives you evidence to develop your pricing strategy, it also enhances the relationship you have with the customer.”
Greg and I are delivering a free webinar on Thursday June 13 where we will discuss how to use Evidence-Based Bid Pricing as a powerful strategic weapon to build more successful bids.
If you missed the webinar, contact Greg Eyres to find out more about Evidence-Based Bid Pricing.