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
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
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
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
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
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
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
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.
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
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
Hinz Consulting is a proposal, capture, and business development consulting firm. We help customers, including Fortune 100 clients, win Government contracts in every market.
