Pricing to Win: Is Not One Size Fits All

When some people hear “price to win” they immediately think “lowest cost.” Would you be surprised to know that the lowest offered price can still lose? Calculating an accurate price to win influences your solution or offering and can affect many aspects of your proposal—helping you increase your chances of winning.

There are four key features you must evaluate to perform an accurate pricing to win analysis:

• Acquisition requirements
• Customer’s budget
• Competitors’ likely bids
• Realistic costs to deliver

Each of these features have ripple effects that you must consider as well. How will competitors react to price changes you make? Do you need to adjust your pricing due to market conditions? Fully evaluating these areas and calculating your price to win requires gathering accurate information—and checking frequently to make sure the information remains accurate.

Pricing to win is not one-size-fits-all, even on similar opportunities. Different customers have different needs, preferences, budgets, and decision-making processes. Do not assume that all customers are the same or that they will respond to the same price. Segment your customers based on relevant criteria, such as size, industry, location, or buying behavior.

The price to win is not a fixed number that applies to every situation. It depends on the context of each opportunity, such as the scope, duration, complexity, risk, urgency, and importance of the project. Evaluating requirements, the customer’s budget, competitor information, and your costs to deliver will give you a precise price to win that will help you develop your proposal win strategy.