Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

APMP Foundation: Winning Price Development

1,406 views

Published on

  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... ,DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

APMP Foundation: Winning Price Development

  1. 1. APMP® Accreditation Programme Developing Strategy Session : Winning Price Development Developing Strategy© APMP 2005 and Bid to Win Ltd 2010 Version: 0v9
  2. 2. Learning objectives:In this unit we are going toUnderstand the difference between value and priceExamine the development of sound business caseLearn how to work with others to set a cost targetAnalyse competitors and customer to establish awinning price target Proposal Guide 182
  3. 3. Building up to the winning priceWhat does the prospect Value?What is the prospect’s Budget?What should be the Target Price?What are our solution Costs?What will be our competitors’ price?What’s the Winning Price? Proposal Guide 182
  4. 4. Value and Price Price to Customer Value to Customer Capability
  5. 5. Value and Price Value to Customer Price to Customer Capability
  6. 6. If you don’t show value, winning is a game of chanceIf you cannot establishsuperior value based ontechnical, contractual,managerial, quality, orservice differentiators,then the customer will beforced to choose based onprice.© 2001 The Sant Corporation
  7. 7. Showing value is really important when… You are displacing an accepted • Incumbents tend to win incumbentYou are changing a • People resist changing the way they earn their process living You are relocatingcontrol of a valuable • Control = power, prestige and job security process or asset • Inertia and passivity sometimes seem safer Doing nothing is a than taking action viable alternative © 2001 The Sant Corporation
  8. 8. What is your Value Proposition?– Starting……………………………...…………………… [implementation date]– As a result of <your company>’s… [service or product]– Client will be able to……...................... [do what specifically]– Resulting in………………………………………….. [quantified business improvement]– With payback within………………………… [timeframe]– We will document our delivered value by……………………………… [result tracking strategy]
  9. 9. Different strokes for different folksThe Value Proposition varies depending upon the buyer, for example: CFO • Cost reduction, CAPEX savings, efficiencies CEO • Shareholder value, market value CTO / CMO • Quality, capability, competitive position Value must be QUANTIFIED
  10. 10. Value drives the prospect’s business case and purchase budget Their internal cost assumptions Their Their view of perceived risk value Their Their vendor Vision & benefits Business price Case assumptions
  11. 11. Some basic rules:Value PricePrice Budget
  12. 12. Establishing a Target Price achieve your take into account A Target be within the Customer’s organisation’s your acceptable competitor’s Price should budget margins pricesEstablish the target price early Use both, until Methods: Top down Bottom up they converge
  13. 13. Your target solution should support the Sales Strategy Non Compliant Minimal ? Compliance? Additional Value? What is your Strategy?
  14. 14. Setting Cost Targets Target Cost may be less than, greater than or equal to Target Price depending on the business case for the opportunity Include the total cost for a technically compliant solution, including: • Resources • People / facilities / sub contracts • Deliverables • Risks • Contingency • Bidding costs (sometimes part of overheads) • Cost of finance (if appropriate)
  15. 15. Use top down and bottom up together Top Down • Customer value • Customer budget • Competitor price Bottom Up • Cost roll up • Risks • Required Margins
  16. 16. The bidder and prospect business cases must both stack up Delivery Risks & Costs Assumptions Achievable ROI & Revenue MarginsObjectives Our Bid Budget and Business and Sales Benefits Costs Case
  17. 17. Competitor price positioning“You will achieve more value with our solution than with the next best alternative”Value Price Value PriceWinning Solution Next best alternative
  18. 18. Hitting the ‘Competitive Range’ Capability
  19. 19. Hitting the ‘Competitive Range’ Capability
  20. 20. Hitting the ‘Competitive Range’ Capability
  21. 21. Hitting the ‘Competitive Range’ Capability
  22. 22. Hitting the ‘Competitive Range’ Capability
  23. 23. Quick Quiz Question: Which is most likely to be the winner?a. Value equals priceb. Price is greater than valuec. Value is greater than priced. The value proposition for each type of buyer is the same Please make your selection in the Polling pane
  24. 24. How did you do?When perceived value equals price you may end up competing purely onprice. If the competition has exactly the same features and benefits set asyours and a lower price then the prospect may find it difficult to justifychoosing your offer.If your price is greater than the value being offered then unless the prospecthas other choices they may not take your offer. Expect to negotiate topreserve your price.Where the value is greater than the price then the prospect is more likely tolook favourably on your offer. You should still expect to negotiate.If the value proposition for each type of buyer is the same, then this suggeststhat all are buying for the same reason and have identical motivations. Can thisbe true?
  25. 25. In this session we have:Analysed competitors and customer to establish a winningprice targetWorked with others to set cost targetExamined the development of sound business caseUnderstood the difference between value and price Proposal Guide 182
  26. 26. Preparing for the e-torial• Consider how and when pricing for proposals is done in your organisation?• What kind of pricing challenges do you face?• What would ManCo perceive as value?• What would ManCo perceive as risk?• Prepare your answers and put into the class space. Note: You are not expected to share your pricing information at the eTorial.

×