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What is a price proposal? A price proposal is a contractor's preliminary bid for the price for a potential customer's job. It's a document that identifies a single price the contractor will charge after calculating the potential costs they will incur as a result of completing the customer's project.
With the impact of pricing in mind, here are 3 important rules for pricing a proposal:Don't price based on your cost.Your price is limited by your perceived differential value so price based on that.Don't lower your price to try to lower risk.Give the buyer options.
Drafting Your ProposalDescribe the best-case scenario.Identify how the best case scenario would enable the organization to more effectively accomplish its mission.Identify a small number of core objectives that, if achieved, could bring the organization closer to the best-case scenario.More items...
Your price proposal must be clear, concise and readable. It must cover both the direct and indirect costs involved in serving the potential customer, and it should demonstrate that you offer excellent value for any expenditure she makes. Research the potential customer's company.
A great business proposal is like a story. Just as you wouldn't put a conclusion at the beginning of a story, you don't want to put the pricing section before the introduction. There is no specific place where the pricing section should go, but there are some general rules.