Why would your company have bid with a zero mark-up on some past tenders? Why didn’t it win all of those contracts?

Price quotes and pricing for Bus 640 Week 5 Assignment Solution

To gain an edge over our competitors and secure the contract, it is possible for us to bid at a zero markup on past tenders. This will allow us to increase profits and give rise to higher profit margins. The advantage of this strategy is that it removes the need for price negotiation and places us in a stronger bargaining situation, which allows us to win more contract at a lower cost.

This strategy has its risks, however. Other bidders could also choose a similar approach. Therefore, if we are not careful about how we structure our proposal or fail to provide additional value beyond what others offer – then it is likely that we will not win all of those contracts regardless of whether or not the mark-up is zero.

Our company’s inability to win such contracts could also be caused by the high quality services/products offered by our competition. If they are able to demonstrate how their offerings outperform ours in terms of features/functionality etc., then this alone could give them an edge during evaluation process – making it difficult for us to secure the contract even if our pricing is competitive.

In conclusion, while bidding with a zero mark-up can be an effective way of gaining an advantage over rivals and winning more business – there are still several factors at play which could prevent us from securing every single one of these deals; such as competing offers being better suited towards meeting customer needs or simply not providing sufficient value beyond what others offer etc.

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