Price to Win

Few bidders really know if they are bidding a price to win.

Synappsys has developed a tailorable Price-to-Win (PTW) model that delivers real insights into winning price target bands and PWin sensitivity to prices and technical scores.

“There is no one-size-fits-all solution to price to win. Every opportunity and client is unique. We build tailored solutions around a common proven framework”

We often see opportunities in bids to “Game the Price“. These are cases where the customer’s bid evaluation price and the actual contract value differ. When this happens, there is a strategic pricing approach that can minimize your bid price without sacrificing net revenues and margins. We have even seen cases where you can simultaneously improve your win probability and margins.

There is no “one-size-fits all” solution in the Price-to-Win arena. Using a common foundation, synappsys efficiently develops a unique model for each situation. We configure the PTW analytical model and Price Gaming strategies to match the specific competitive scoring methodology for your bid. Then we can facilitate Black Hat and PTW sessions that position you for success.

PTW is complex because there are often three separately scored elements in a proposal: the bid price, the rated technical compliance, and the ITB Value Proposition (offsets). Sometimes the relationship between these elements and the final score is complex or non-linear. Throw in a bunch of competitors with varying degrees of competitive intelligence, and there is a complex mathematical puzzle to solve. Our model provides deep insights into how the competition is likely to play out.

Our PTW analytical model typically runs over 100,000 independent scenarios, and generates clear insightful graphics that facilitate “what-if” analyses.

Input data can be very simple or reflect a complex understanding of your competitor’s cost environment or approach to pricing, such as;

Detailed costed work breakdown structure
Multiple wrap rates and fee rates
Uncertainty bounds for each workpackage and rate
A range of ITB value proposition responses
A range of possible scores against rated technical requirements
Gaussian and Linear random distributions

“For some competitors, there is a gold mine of competitive intelligence out there that can allow you to develop a detailed and accurate assessment of rates, prices and likely behaviors”

Even in the absence of detailed competitive pricing intel, our PTW model will tell you a great deal about how the competition will play out:

What is the relationship between your win probability and price, ITBs and rated score?
What is a single point in ratings actually worth?
What is the likely price to win band?