What tools & approaches do organizations currently use for Price to Win?
Organizations currently use a range of tools from very general analytics tools (i.e. Excel) to very specific cost estimating tools. These tools vary in their capability to produce standardized outputs, to facilitate consistent approach, or include a range of outcomes. Most existing tools also do not explicitly include other competitors in their analysis – instead focusing solely on their own organization’s bid.
Once a cost estimate is produced, business development, capture management, and executive personnel often influence the price downward in an effort to win the competition. This can reflect subjective knowledge of the customer’s buying tendencies, the competition evaluation criteria, or expected bids by competitors.