Contract Cost and Price Analysis: a Realistic Approach for Buyers and Sellers
Understand the key issues with pricing and learn the real tools and techniques for analysis.
It is essential that professional procurement and sales staff have a clear understanding of the various factors that determine how to set the prices that are charged. Pricing is both an 'Art' and a 'Science' as well as being an important and flexible tool in the buyer/seller relationship. The rapidly changing commercial environment in which we operate often involves changes over time.
This course examines these issues in relation to the procurement of both goods and services ("contracts") and from the perspectives both of the buyer and the supplier. It provides an understanding of the tricks of the trade that buyers and sellers use to maximise profits.
To provide participants with a thorough understanding of the difference between price and cost, value and reward, a 'good deal' versus a 'bad deal'. It takes into account all the factors involved such that the person can be confident of awarding the contract to the best supplier under the prevailing circumstances.
This course is designed for:
Staff in the procurement and contracting function(s) and for staff from suppliers. It is suitable for newcomers to contract management as well as for experienced staff, for whom it should open wider horizons beyond the traditional adversarial viewpoint.
At the end of the course the participants will have;
- The ability to understand the relationship between cost, price and benefits
- Familiarity with the basics of marketing - Product, Price, Place and Promotion, and how these effect them as corporate buyers
- Pricing strategies
- Knowledge of the Total Cost of Ownership model and how it can be applied in a range of procurement circumstances
- Ability to understand claims and variations and settle them with a favourable commercial outcome
- Understanding of how contractors arrive at the bid price
- Understanding of the principles of On-Line bidding
- Familiarity with the seller"s point of view, how he perceives the buyer in terms of being a "good" customer or otherwise, and how this might influence his pricing policy.
This course is available for in-house delivery if required.
This course will be conducted in the English language.