The Winning Bid, 2nd Edition

07

How much?

Pricing your proposition

THIS CHAPTER COVERS:

•  Budget

•  Price

•  Value

•  The pricing balancing act

•  Participating in e-auctions

Ah, the $64 million question: how much? Clearly, I can’t actually tell you how much you should charge for your product or service, but this chapter will deal with some pretty important things you should know about as you work out your pricing strategy for your bid.

There are three critical elements at play when you create your commercial offer: budget, price and value. My trusty Oxford English Dictionary gives me the following definitions:

    •  budget (n): the amount of money needed or available for a purpose;

    •  price (n): the amount of money expected, required or given in payment for ...