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Price to Win: What It Is and When Estimation Gets Involved

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I am continually amazed at the wide variety of opinions about what Price-To-Win is and who plays what role in Price-To-Win.

I have spoken to some customers that are offended by the term Price-To-Win.  They hear it as “trick the customer to win.”  Of course that is not what price-to-win is all about.  Price-to-Win is about choosing the most affordable alternative that fulfills the customer need and that also will be successful against competition.

PRICE-TO-WIN GOALS

Price-to-Win identifies the correct balance of capability that can be delivered to the customer at the value the customer wants. Price-to-Win provides management insight for:

  • Competitive positioning
  • Strategic partnering
  • Risk tolerance
  • Customer relations
  • Optimal bid strategy

This information is derived by:

  • Market inputs
  • Engineering identification of viable alternatives
  • Engineering architectural design of each alternative
  • Cost and risk analysis of alternatives and risk alternatives
  • Price analysis (cost and price are two different issues)

PRICE-TO-WIN 8 STEP PROCESS

Graphic representation of Price-To-Win Flow & Responsibilities
  • Step 1: Gather market intelligence: Marketing personnel identify competitors possible strategies and
  • Step 2: Determine requirements & features
  • Step 3: Sketch out Architecture Design
  • Step 5. Determine viable alternatives
  • Step 6: Cost Analysis & Estimation of Alternatives
  • Step 7: Select best alternative
  • Step 8: Establish price

GALORATH ROLE IN PRICE-TO-WIN

Galorath and SEER primarily support the estimation and analysis of alternatives, taking inputs from engineering, marketing and others.  The result of this includes cost and cost risk.  Once that cost is determined, price analysis will determine the actual price to bid. This price may vary significantly from the cost based on business decisions.

Navigating Estimation Bias Across Software Development

In today’s software development landscape of ever-changing requirements and uncertainties, it can be difficult to manage projects, ensure each initiative is rooted in data-driven insights, and stay on track for success. However, it doesn’t have to be a time-consuming and demanding process….

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Galorath From software to hardware, IT to space, Galorath's cost estimating software helps the most complex projects on the planet stay on budget and on schedule.

Every project is a journey, and with Galorath by your side, it’s a journey towards assured success. Our expertise becomes your asset, our insights your guiding light. Let’s collaborate to turn your project visions into remarkable realities.

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