“Once you have a pricing structure in place.
It is important to get an accurate benchmark of what your competitors are pricing for similar services.
In many cases, you can refer to analyst reports.
You can refer to analyst reports such as those from the Gartner Group.
Sometimes, these can be expensive.
You must avoid having a false sense of security in your pricing.
Vendors often explain to analysts that they compare their list price to the actual “”street”” price.
Vendors provide analysts with list prices and actual street prices. In order to get the best information, it is often
The best information comes from the managed services trading team, which trades
understand what prices their competitors are offering for similar services. Many companies will
provide you with a copy of their competitors’ bid prices if you ask. As mentioned earlier, work with an analyst firm to
you can get “”blind bids”” from your competitors. That way, you can get a pretty good idea of your competitors’ prices.
You will be able to figure out your competitors’ prices.
Another way to figure out your competitor’s prices is to hire an employee of your competitor.
The most important part of comparing prices is to understand what specific products they have.
That’s why actually bidding competitively or doing a “”blind bid”” can give you better competitive pricing data than analyst reports.
Large custom deals often determine the success or failure of a managed services business.
Therefore, the pricing of these deals is very important. As with other custom deals
As with any other aspect of a custom project, you want to start with standard pricing.
The core of the product you will deliver is
based on a standard offer. The delivery contract team will
need to cost out all the non-standard features that need to be supported for a particular customer.
As with all aspects of custom deal development, the business development team
Work closely with the delivery team to calculate the cost and
make sure that reasonable assumptions are made.
When proposing large custom projects, it is important that the delivery team be actively involved.
It is not something to be shunned for fear of prolonging or jeopardizing the close. By doing it right
understanding your environment and your ability to deliver.
you can increase your customer’s confidence in your ability to understand and deliver their environment. This will also help
also increase the likelihood of a successful relationship with the customer (upselling).
It is important that the price taker for the service business belongs to either finance, proposal management, or business development.
The person in charge should work with the offer manager to determine the standard price, and then work with the bid development person on a project-by-project basis to determine the price for each custom project.
A pro forma for each custom project is prepared and the revenue, profit, and cash flow over the life of the contract are reviewed.
A pre-defined bid approval process should include financial approval of all custom deals.