Helping David Compete Against Goliath

strategic pricing

One of the biggest challenges for smaller businesses (particularly for those who no longer qualify for contract assistance programs) trying to win public sector opportunities in a “full and open” environment is competing against large businesses. Large businesses often have the advantage of scale, established reputations, and more substantial resources. However, through intelligent and strategic pricing strategies, small businesses can carve out their niche and […]

Does Every Bid Need a Formal Pricing Strategy?

formal pricing strategy

One of the questions I am often asked by the companies that I work with – “do we need a formal pricing strategy for every competitive opportunity that we pursue?” The answer is not straightforward and depends on a number of factors including the nature of their business, the strategic importance and complexity of the […]

Aggressive Pricing vs. Value Differentiation – When to Lean In and When to Pull Back

Aggressive Pricing

One of the questions that invariably comes up when I have worked with companies on multiple competitive opportunities – “do we always need to be super aggressive in our pricing in order to win”? The reality is no. Aggressively pricing every opportunity does not need to be the norm. There needs to be a strategic balance between engaging in aggressive pricing […]

Pricing Strategies for Highest Technically Rated Offeror (HTRO) Procurements

HTRO Procurements

In the complex arena of government contracting, there are several procurement types that weigh non-price and price factors very differently.  At one end of the spectrum is “Lowest Price Technically Acceptable (LPTA)” in which the lowest submitted price wins the procurement if the solution is deemed to be technically acceptable (not necessarily the best). At […]

Outside Continental U.S. (OCONUS) Travel Pricing

Travel Pricing

You are preparing to price a contract and you see requirements for labor, Other Direct Costs (ODCs), Direct Materials (DMs), and Subcontractors (Subks). All good, but in ODCs you see requirements for OCONUS travel. At first thought you assume that all you need are quotes for airfare, hotel and per diem, but OCONUS travel brings […]

Why a Company Should Consider On-Demand Strategic Pricing

Strategic Pricing

For companies navigating resource constraints and operational challenges, opting for an on-demand strategic pricing service model rather than an in-house approach can be a game-changer. It can significantly influence a company’s competitiveness, profitability, and overall market positioning in three key areas – expertise and specialization, cost efficiency and flexibility, and strategic focus and adaptability. Expertise […]

“Should We Bid FFP or CPFF?” – A Strategic Pricing Conundrum

Strategic Pricing

In the last year, I have worked with several clients that have been presented with a pricing option in public sector procurements they have been pursuing – either firm fixed price (FFP) or cost-plus fixed fee (CPFF). Deciding which pricing option is the “right” one is a complex decision that hinges on various factors including […]

Incorporating Risk Management in Your Strategic Pricing

Strategic Pricing

Incorporating risk management into a company’s strategic pricing practice, especially for those competing in the public sector, is critical for ensuring sustainability and competitiveness. The public sector’s unique environment, characterized by stringent compliance requirements, budgetary constraints, and evolving policy landscapes, necessitates a comprehensive approach to managing risks within pricing strategies. Here are a few ways […]

Incorporating Cost Optimization into Your Strategic Pricing Process

strategic pricing

I spend a considerable amount of time helping my clients recognize the differences between cost and price. While we tend to focus on the external facing price that a customer will see, understanding a company’s underlying the cost structure is equally important. Conducting a cost optimization exercise in the strategic pricing process is crucial and […]

“Race to the Bottom” – Strategic Pricing Strategies for LPTA Procurements

LPTA

Work in public sector strategic pricing long enough and you will be asked to assist a company win a Lowest Price Technically Acceptable (LPTA) procurement. These procurements present a unique challenge because the primary decision criterion is price, and meeting a defined set of minimum technical standards is secondary. Crafting an effective pricing strategy for […]