Community > Forums > Other Industries > What is a sealed bid pricing?
Post a topic Post a survey Forum Guidelines

What is a sealed bid pricing? 0 replies,13353 views

Sealed-bid pricing (Sealed-BidPricing) sealed-bid pricing refers to the case of bidding in the tender, companies know their competitors on the basis of our competitors pricing. This price is the enterprise of its competitors offer estimates based on certain, with the aim of signing the contract, its bid should be less than the competitors offer. Sealed bids is mainly used for pricing the tender transaction. Sealed-bid pricing (Sealed-Bid Pricing) [edit] Overview of sealed bids, sealed bids pricing is the pricing situation in the tender bid, the companies know their competitors on the basis of pricing. This price is the enterprise of its competitors offer estimates based on certain, with the aim of signing the contract, its bid should be less than the competitors offer. Sealed bids is mainly used for pricing the tender transaction. At home and abroad, many commodities, raw materials, equipment and construction projects trading and contracting, and the sale of small businesses, are often tender with the Employer, contractor bidding way to select the contractor to determine the final contract price. Generally, only one tender side, in a relatively monopolistic position, but there are multiple bidders, in competition status. Subject matter of the price from the various companies involved in bidding each other down to determine the conditions of independence. The buyer of all bidders in the tender, the tender offer are usually the lowest bid, its offer is the contract price. Such a competitive sealed bids, said the pricing method pricing. [Edit] Application of sealed-bid pricing method in the bidding, the winning bid price is the ability of the business critical factors. While high prices can bring higher profits, but the chances of winning contracts reduced; the other hand, low prices, low profits, although the chance of winning, but the opportunity costs are high, less profit. So, companies should determine how the bid price? First, the enterprises according to their own cost, to determine the tender price of several alternative programs and the cost of margin is calculated based on corporate earnings in all price levels may be. Secondly, the analysis of the strength and potential competitors offer various options to determine the enterprise's chances of winning contracts. The strength of competitors, including the production and sales, market share, credibility, reputation, quality, service and other projects, which may be quoted in the analysis derived on the basis of historical data. Again, according to the profitability of each program and the successful bidder may be an opportunity to calculate the expected profit of each program. = Expected profit of each program level of profitability of each program may be successful \u00D7 probability (%). Finally, according to the purpose of the enterprise to choose the tender bidding scheme. Using this method, the biggest difficulty is that estimates the probability of winning. This involves the mastery of competitors bidding situation. Only through market research and data analysis of past bids rough estimate. [Edit] Step 1 bid pricing. Tender tender notice was issued by the tender, bidders collection activities. In the tender stage, the tender are to complete the following: (1) to develop tender. Tender also known as tender documents, tender person is made by tender closing all constraints. Including: tender name, quantity; quality requirements and schedule; opening mode and duration; contract terms and formats. (2) to determine the bidding. The end objective is the subject of the tender were willing to test their own trading limits, it is extremely important to evaluate the basis for winning. Marked the end there are two: one for the next standard, which is published by the end of the tender were marked in advance for the reference of tender offer; the second is the dark mark, which is bidding in the sealed under the supervision of a notary public, opening only when mark the bottom in public unsealed. 2. Tender invitations to tender by the tenderer under the provisions of the tender offer competitive tenders were submitted, the tender would have to bear upon delivery of my duties after winning. The tender, the offer, bid, expected profits some connection between the three. In general, the quotations, profit, but ACCEPTANCE PROBABILITY low; offer is low, the expected profit is small, but ACCEPTANCE PROBABILITY high. Therefore, it is necessary to consider the offer target profit of enterprises, but also consider the competitive situation with the probability of winning. 3. Opening the tender in the specified time called all the bidders, will be unsealed offer letter on the spot, choose one of the most beneficial to the successful bidder for one or several transactions and sign contracts.
Share to:

Forum Guidelines

For general customer inquires, please contact Alibaba Service Center.
To lodge a dispute/complaint, please visit our Complaint Center.
For general AliExpress customer inquiries, please contact AliExpress Customer Support.
If any posts corresponding to the categories above are located in the Forums, they will be deleted without prior notice.