1. Foundation Certification Study Group Session 6 Proposal Writingng Study Group Session 7 Proposal Pricingng

2. Proposal Pricing

3. Common Pricing Models Your Logo 01Fixed Price Time & Materia l Managed Services Outcome based Pricing 02 Payments are made on an hourly or daily basis and cost of materials used, up to a not- to-exceed amount. The price is set and fixed by unit of product or measure. FP contracts impose the maximum risk on the Contractor and minimum administrative burden on the customer. 03 04 Outcome-driven solutions are pin-pointed and positioned as delivering specific value to the business. Outcome-based projects aim to deliver measurable impact on the customers overall business results. The managed services model offers defined service deliverables at a fixed cost. In this model the value-add is quantitatively measured in terms of target Service Level Agreements (SLAs). This is based on clearly defined parameters in project performance and quality. Customers are billed at a fixed monthly cost plus unit cost per additional unit delivered.

4. Price-to-Win 05 04 03 02 01 Find out the clients max/min price range and min/max capability range and their price- capability tradeoff window. Understand the price-capability tradeoff Look for budget information and the funding sources from different annual reports, public sources and websites Determine the clients budget and funding profile Find out the clients estimates by comparing total cost to the total cost of other similar projects, parametric or bottom up costing Determine the clients should-cost estimate Determine the costs for different solution models like marginally compliant, capability-satisfied and value-driven solutions. Estimate solution cost Establish your PTW and implement your strategy as per the capture plan Integrate the solution and PTW

5. Pricing Strategy 1 865432 7 Develop cost bogeys early Differentiate between Price & Value Define a pricing strategy aligned with sales strategy Base all cost estimating rationale on nothing is new assumption Prepare estimation guidelines for each competition Minimize negotiated price decrements Consider No-Bid if primary focus of sales is to reduce costs Disclose price in executive summary unless prohibited

6. Your Presenting Cost and Price Data 02 03 01 05 04 06 Present relative cost comparison in the technical proposal Substantiate cost or price with past performance data. Explain and quantify the added value Include Pricing in Executive summary unless prohibited Present the cost and price data graphically Prepare a cost volume summary where costs are prohibited in technical proposal

7. Stay connected with us on Linkedin Study Group for details of the next webinar on APMP Foundation Mock Test. Thank You. Abhijit Majumdar CP.APMP Associate Vice President Zensar Technologies Ltd. Pune. India.