Pricing requirements vary by market and are unique to every organisation. In this webinar we will discuss some of the common pricing models, PTW, Pricing strategy and presenting the Price data in proposals.

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 customer’s
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 client’s 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 client’s budget and funding profile
Find out the client’s estimates by comparing total cost to the total cost
of other similar projects, parametric or bottom up costing
Determine the client’s 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
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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.