Pricing
Price is 40% of the score. It decided 80% of the outcome.
Weighted tender scoring rarely behaves the way the weightings suggest, and the arithmetic that actually decides awards sits somewhere most bidders never look.
Rialto Bridge
Pricing
Articles on pricing.
Pricing
The scope changed four times. The price changed once.
Most service businesses have a contractual right to charge for scope changes and lose most of the money anyway. The…
Pricing
Both accounts run at 38% gross margin. One takes four times the admin.
Gross margin says two customers are equally good. Everything that happens after the invoice says otherwise, and most of it…
Pricing
The contract is fixed for twelve months. Your inputs re-price every thirty days.
Fixed prices with floating input costs is an unhedged position, and most businesses carrying it have never sized how large…
Pricing
The proposal had one option. The buyer’s only choice was yes or no.
A single-price proposal quietly hands the comparison to your competitors, and to the option of doing nothing at all.
Pricing
The price rise applied to new business. The back book is most of the revenue.
Grandfathering existing customers through a price rise feels like the cautious choice. The arithmetic of how long those accounts persist…
Pricing
The estimate was £48k. The other estimator priced it at £61k.
When two experienced people price the same job 25% apart, the company's real pricing policy is whoever happens to pick…
Pricing
Nobody left after the price rise. That’s a finding, not a win.
A price increase that produces no complaints and no cancellations has told you something important, and it is rarely the…
Pricing
The loss reason is price. A third never got a quote.
Price is the most commonly recorded reason for losing a deal and the least reliable one. What the label conceals,…
Pricing
The discount was 15%. The gross margin was 40%.
A discount is not a pricing decision. It is a margin decision, taken in the last hour of a deal,…
Take it further
This is the general pattern. Your business is the specific case.
Everything here is free to read with an account, and always will be. What it cannot do is tell you which of these applies to your numbers, your market and your constraints. That is the work we do with clients.