Speculate on key areas where most companies fall short when

Speculate on key areas where most companies fall short when conducting price analyses. Suggest two (2) methods that a company CEO should use in order to reduce price analysis inconsistencies. Support your suggestion with real-world examples.

Solution

In my opinion, the area where most of the companies fall short while conducting the price analysis is that most of these companies use the old and historical market data and in some cases, they do not conduct any market price analysis on their own for the services offered by them at present.

In most of the cases, the only price analysis which is done by the firm is comparison pricing, in some cases the bids are offered by the firms which are lower than the bids of other firms and this will lead an impression on the contracting officer that the firm is not able to understand the solicitation requirements.

With the help of certified cost and pricing data along with comparison it with earlier quotes and comparing the prices which were paid for the similar products or services can be seen as the most effective method which can be used to reduce the inconsistency of the firm while performing the price analysis.

In order to determine the success of the business real world pricing is the single most important factor thus it is very important for the owners of small business to review their pricing policies on regular basis so that they can be in sync with the market realities.

Apart from this, the company can have an open line communication with the manufacturer in the initial phase of contract process in order to make sure that a request for individualized price will be a regular affair.