The document presents the Incite! RFP Competitive Price Forecast Engine, a tool designed to help sales groups optimize their pricing strategy against competitors. It addresses common pricing pitfalls and offers a structured three-stage process to analyze and adjust prices based on competitor data. By using this tool, businesses can set informed prices to increase their chance of winning bids while maximizing profit margins.

1. RFP Competitive Price
Forecast Engine
win
more
deals
profitably
Robert
D.
Brown
III
678.947.5997
rdbrown@incitedecisiontech.com
www.incitedecisiontech.com

2. Sales
groups
employ
a
number
of
means
to
develop
compeDDve
RFP
response
bids
• One
approach:
compare
“best
guess”
compeDtors’
prices
to
an
iniDal
home
price.
• Adjust
the
home
price
unDl
it
undercuts
the
compeDtors’
prices.
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$Price
IniDal
Home
Price
“Best
Guess”
CompeDtor
Price
Readjusted
Home
Price

3. What
can
go
wrong
with
this
approach?
• One
rarely
knows
the
compeDtors’
price
with
certainty.
• “Best
guesses”
are
based
on
bias,
caveats
&
anecdotes.
• CompeDtors’
actual
price
is
based
on
uncertain
underlying
cost
components
&
desired
margins,
leading
to
compounded
uncertainty.
• Uncertainty
leads
to
ambiguity
about
the
right
direcDon
to
adjust
price.
• Price
compeDDon
and
margin-­‐destroying
commodiDzaDon
escalates.
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“Boy,
that
escalated
quickly.
I
mean,
that
really
got
out
of
hand
fast!”

4. With
the
Incite!
RFP
CompeDDve
Price
Forecast
Engine,
you
can
• Compare
your
price
against
the
likely
range
of
compeDtors’
prices.
• Focus
prioriDzed
adenDon
on
which
compeDtors’
price
components
affect
your
ability
to
win
on
price.
• IdenDfy
the
most
effecDve
areas
to
adjust
your
costs
to
price
neutrality
to
focus
on
delivering
intangible
benefits
that
customers
value
more.
• Avoid
leaving
value
on
the
table
and
cugng
margins
by
pricing
too
low.
4
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5. The
Incite!
RFP
CompeDDve
Price
Forecast
Engine
follows
a
three-­‐stage
iteraDve
process
Prepare
Analysis
Calibrate
CompeDtor
Cost
AssumpDons
Supply
Your
Cost
AssumpDons
Adjust
Your
Price
to
Win
at
Probability
of
Award
Can
CompeDtor
InformaDon
be
Improved?
Can
Your
Price
be
Improved?
No
IdenDfy
Most
SensiDve
Inputs
on
Tornado
Chart
Recalibrate
Inputs
with
Improved
InformaDon
Yes
IdenDfy
Most
SensiDve
Inputs
on
Your
Price
Readjust
Inputs
to
Narrow
Price
Gap
Yes
End
No
1.
2.
3.
1. Capture
iniDal
cost
informaDon
2. PrioriDze
areas
of
greatest
uncertainty,
gain
intelligence,
then
recalibrate
accordingly
3. Modify
your
costs
to
reach
price
indifference
5
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6. Capture
cost
data
according
to
your
unique
template
price
formula
6
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7. Capture
&
document
raDonales
for
compeDtors’
price
components.
Calibrate
with
80th
percenDle
predicDon
ranges.
7
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8. The
user
interface
imports
the
pricing
data
and
provides
key
results
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9. Home
Price
Probability
of
Win
shows
the
corresponding
likelihood
of
winning
at
a
given
price
Your
current
price
is
$2.25M.
The
probability
neutral
price
is
$1.75M,
given
current
informaDon.
In
this
example,
you
will
need
to
determine
how
to
move
your
price
$500K.
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10. Current
Price
Comparison
shows
your
price
compared
to
compeDtors’
likely
prices
This
appears
to
be
a
balanced
price
posiDon,
but
the
Probability
of
Win
at
Current
Home
Price
is
only
1.74%.
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11. The
probability
of
winning
is
dependent
on
the
amount
of
uncertainty
about
compeDtors’
prices.
The
tornado
chart
breaks
down
the
sources
of
uncertainty
to
guide
efforts
to
gain
beder
informaDon
about
compeDtors’
prices.
11
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You
have
high
confidence
in
these
elements.
Focus
your
adenDon
on
gegng
beder
informaDon
here

12. Home
Price
Sensi:vity
to
Cost
Elements
shows
priority
of
adenDon
for
adjusDng
your
price
to
a
neutral
price
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AdjusDng
this
element
moves
price
fastest
in
desired
direcDon

13. Final
Price
Comparison
shows
all
final
price
esDmates
aner
price
adjustments
are
made
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14. Benefits
of
Using
the
Incite!
RFP
CompeDDve
Price
Forecast
Engine
• Develop
more
informed
RFP
pricing
• Avoid
the
risk
of
pricing
too
low
(leaving
money
on
the
table)
or
too
high
(reducing
price
compeDDveness)
• Focus
more
adenDon
on
providing
intangible
benefits
that
differenDate
your
offering
• Win
more
deals
at
a
higher
profit
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