Chapter Name: Fundamentals of costing, revenue and profits for tenders
Description:Details how to price tender bids effectively while ensuring profitability.
Purpuse:To create competitive and financially viable proposals.
Rational:Balances cost realism with business sustainability.
Chapters Topics
Process for assessment of suppliers and new products
Evaluating supplier reliability, product quality, lead times, and pricing for inclusion in tender offerings.
The identification of competing products and services
Analyzing competitors’ offerings, pricing, and value propositions to position the business competitively.
Costing methods for tenders
Describing various costing approaches such as job costing, activity-based costing, and standard costing to price tenders accurately.
Calculations for tender pricing
Determining tender prices by calculating costs, markups, taxes, profit margins, and contingencies.
Internal factors impacting pricing decisions tender
Factors such as overheads, capacity, production costs, and available resources influencing pricing strategies.
External factors impacting pricing decisions tender
Market conditions, competition, economic climate, and regulatory changes that affect pricing.
Calculations of variations in pricing decisions
Performing sensitivity analysis and adjustments to pricing based on fluctuating costs and risks.
Calculations for break-even, profit and costing
Understanding and applying break-even analysis, profit forecasting, and full costing for financial decision-making.
Classification of expenses and revenues
Categorizing fixed and variable expenses, direct and indirect costs, and identifying revenue streams.