Price is always a component of any federal contract because agencies are dealing with more restrictive budgets. When your company starts out, you’ll bid anything and everything to get the revenue in, and some of those contracts may even be money-losers. But getting the wins creates momentum and brings relationships with customers who want to keep their successful contractors on their projects.
You think your costs are too high – your customer has hinted at it, and you’re just not winning like you used to. How do you determine if your costs are too high, and what actions can you take to drive down your overhead?
During this class, you’ll learn answers to the following questions:
- What are the “going rates” for fringe, overhead and G&A?
- What are other companies doing to get their rates low?
- How do you find the balance between pricing to win and managing growth?
- How do you know that all your costs are covered?
- How do you determine where your break-even point is and why should you care?
- How do you use a Multiplier?
- What steps can you take today to make your pricing better this year and next?
Bonus Tool: Solvability Simple Rate and Pricing Model (RPM) Spreadsheet – just e-mail firstname.lastname@example.org.
Target Audience: Novice and experienced small business government contractors