As a tender writer, I'm often asked for help in pricing the tender response. While I can discuss pricing strategies with you about 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.
But I can help you with a few simple tips so you understand the most essential issues regarding price.
Ensure you've read the tender submission pricing table and understand what the issuer is looking for. It may sound simple, but I've worked with many clients who think they can put forward a whole contract price when the response asks 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 with your bid submission for it. Again, it might be a blinding flash of the obvious bleeding, 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 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 understand your business, 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, for example, if you're bidding for work at 7 out of 10 sites, your tender submission should clearly state that the price is based on you winning the bid for all seven sites.
Check if the pricing is required, including or excluding GST. It's simple, 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.
Pauline’s Note
Need a hand with your tender response? Give me a call at 0400 51457, email me at pauline@tenderwise.com.au, or fill out this form for a chat about the best strategy to create a winning tender submission.