Some Pricing Guidelines
It is important to consider some guidelines when preparing your tender prices. They include:
- Always submit your lowest possible price for the service. If you wish to provide additional services then offer separate prices for the extra services.
- Your price should make you a reasonable profit. You may in some cases 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 clients 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 be 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.
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