Top Three Actions an Enlightened Proposal Team Can Take in Developing a Discerning Pricing Strategy

The leading key to developing a discerning pricing strategy comes from the words in the title of this article - “enlightened proposal team”.?If you have that enlightened team or you regard yourselves as enlightened, then you are a few steps further up the road to designing a winning pricing strategy.?Everyone considers the obvious, logical, and what so many contractors have tried before when it comes to pricing strategy.?So your enlightened proposal team needs to think outside the box, get edgy with your approach, and, most importantly, implement what you design in your strategy.?Here we talk about the top three that most contractors do not consider very often, if at all.?If they do, they toss them out as too prickly to bring up with the team, teammates, or to write about in a cost realism document.?Consider these three as additional to what you are already doing and you’ll cut a significant percentage off your top level price.

Some of the obvious choices are bidding lower indirect rates, making fee considerations, forecasting low escalation rates, blending subcontractor rates (if they are favorable), and blending staff greening in place of totally senior staff.?While these alternatives work to improve your bottom line price, they don’t get you the extra bang to make your price convincing, aggressive and a winner.??Edgier alternatives may include subcontractor indirect rate concessions, use of uncompensated overtime (selectively or across the board), and de-escalation. Let’s address each of these.

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