Transparent Pricing for Your Business Needs: Crafting Winning Pricing Strategies

“How should I price this bid?”

That’s one of the most common questions our clients ask when they approach Kiwi Bid Support. And it’s no wonder pricing is such a big (and confusing) topic. You’re not just here to win a bid, but to make a good profit, too.

Keeping pricing transparent builds credibility with the buyer and sets realistic expectations. No one wants to go through a laborious tendering process to find that both parties weren’t actually aligned – and then having to take things back to the drawing board.

This article helps you quote in a way that meets the tender’s requirements without leaving your business short. It’s packed with our advice on calculating your overheads and costs, staying clear and transparent, and selling your costs to the bid issuer.

Step-by-step: How to price tenders competitively

When you’re writing a tender, remember that competitive pricing strategies aren’t just about being the cheapest. They’re about offering value for money with pricing that also works for you.

Before you can quote competitively, you need to calculate your true costs. Here are the basic guidelines:

1. Identify direct costs. This covers the “visible” costs, like materials, direct labour, equipment hire and subcontractors. Don’t forget to factor in things like PPE and waste handling, depending on your industry.  

   
   

2. Allocate overheads. Consider the costs of training, admin, finance, HR and other overheads (or indirect costs). Do you need to factor in things like permits and insurance, too?

   
   

3. Include contingencies. Things don’t always run smoothly. Consider costs related to labour shortages or other delays or quality issues, and any other unexpected events that might impact delivery. If you plan to offer aftercare, how much will that cost?

   
   

4. Set your margin. This is about considering what your business needs to make the project worthwhile. Your margin should reflect company targets, risk, and market position.

Transparent pricing strategies that win bids

While some businesses shy away from transparent pricing models, being upfront can strengthen your score even if you’re not the cheapest option. (If this is the case, be sure to justify your pricing.)

Transparency shows the assessment team that there won’t be any nasty surprises along the way, should they choose to work with you. This builds trust from the get-go.

1. Break down line items

Divide your quote into tasks and resources instead of sharing one lump sum. Evaluators like to see what they’re paying for.

2. Justify your figures

Strengthen your bid with a little proof. Include case studies or examples of similar projects where you delivered a strong ROI. Other ways to show the reasoning behind your quote include explaining value-added features and USPs: What can you do better than everyone else bidding for the project?

3. Be consistent with tender requirements

Follow the pricing format laid out in the RFP.

In New Zealand, you might be asked for a schedule of quantities (SoQ), schedule of prices, target cost or hourly/daily rates. This does vary between clients and industries, but it’s worth paying special attention to.

Smart idea: Book a tender review service from a specialised New Zealand team who can make sure you’ve followed all guidelines and requirements. When you’re deep in the tender process, it’s easy to overlook details – which could mean your bid goes to the bottom of the pile.

4. Avoid hidden assumptions

Be upfront and clear about everything. This helps to build trust and reduce the risk of evaluator confusion. Often, once someone isn’t sure what you mean, you’ve already lost them.

Selling your costs to the tender issuer

In the eyes of the tender issuer, a “good price” isn’t always synonymous with the “lowest price”. Value for money usually plays a bigger part, so you should bake that into your bid.

Frame your pricing narrative. Emphasise efficiency, risk mitigation and value add. Lean on your experience to highlight what you bring to the table.

Another key way to sell your costs is to use simple language. No matter how capable your business is, you won’t get this across if your tender is littered with jargon. And, if you’re unsure whether evaluators will fully understand your rationale, try adding short explanations next to key cost items. 

Refine your pricing strategy with NZ’s tender writing specialists

Compiling a quote can feel complex and time-consuming, but breaking it down step-by-step tends to make the process more manageable.

For support in pricing tenders competitively, or to outsource the entire process and free up your own time, reach our team on enquiries@kiwibidsupport.co.nz or use our online enquiry form