Market pricing is the process of quantifying what the offering should cost the customer with possible discounts. This step may include differentiating the Market Pricing between your organization and competitor organizations.
What the competition participants might bid depends on many unknowable variables. TruPredict accommodates this by allowing this to be modeled by defining a range of a possible bids.
Market price bids are often broken down by Contract Line-Item Numbers (CLINs) or by Bill of Materials (BOM), TruPredict asks you to enter top-line Market Price estimates. Create multiple bid options per participant to run analysis on different competition scenarios.
You will use these Market Price bids to craft competitive landscape scenarios.
TruPredict evaluates these scenarios during Price to Win analysis to determine the best bidding options to increase your odds of winning the competition.
NOTE: You must create at least 1 price offer for every competitor
Chances are you don’t know exactly what each company will bid. Here you will create multiple price offers that you think they may bid.
Click here to create new price offers.
When you hover over each offer. Any notes or descriptions on the background of why you choose this offer.
If you cannot continue please ensure that every competitor has at least one price offer
When adding a new price offer, you will need to give each offer a name. Optionally, you can give it a description for your own reference.
You will input your top-line price, this is the total of all line items if you were to add them up.
Chances are you are not exactly certain of the exact bid price. Here you can account for uncertainty buy specifying a range around your bid price.
For example, you think a competitor would bid $100,000. To account for uncertainty you can apply a range of values by specifying how far off you can be on the low and the high end, in a percentage.
These ranges will be used for Monte Carlo Simulations.
Additionally, you can set a specific range of values to be used.
Give your offer a name
Describe the why behind this price offer
Enter in your Top-Line Price. This is the sum offer total of all line items
If you are uncertain of the final number. Here you can put in how much lower you think the offer could be and how much higher you think the offer could be.
Here you can limit the range of values that the bid price cannot exceed. For Monte Carlo simulations, this ensures numbers are only chosen within the given range.
Values will generally be chosen around this range. If you put in an absolute range, values will not exceed your lowest or highest values.