Solutions We Create
Pricing for Profitability
Problem
You’re about to sign a large contract and you’re not sure if your price will cover your costs.
Solution: Pricing for profitability.
There is actually a method to the madness of determining prices. (And it’s not too difficult.)
We worked with a consulting company which was signing a long-term contract with a government entity. The principal of the firm wanted to add employees, convert some contractors to employees, and add benefits – all which needed to be considered when entering his bid for the contract.
We helped him figure out what those changes cost and we determined his break-even price point. We also consulted with him on different pricing strategies and gave him a dynamic tool in which he was able to run different price/profit scenarios in order to settle on a price that he was most comfortable with and that he thought would be approved.
When a last-minute event occurred in the owner’s firm that significantly impacted the business and was just hours before the proposal was due, we quickly laid out the resulting scenarios and helped the owner avoid under pricing his contract by $100,000.