Contract Cost and Price Analysis

Contract Cost and Price Analysis

It is essential that professional procurement and sales staff have a clear understanding of the various factors that determine how to set the prices that are charged. Pricing is both an ’Art’ and a ’Science’ as well as being an important and flexible tool in the buyer/seller relationship. The rapidly changing commercial environment in which we operate often involves changes over time and it’s important to know and understand the original cost & pricing structure so that you can understand the real changes that are being made and/or asked for.

In addition, it is important to understand Company Accounts as these show the overall strengths and weaknesses of the companies with which you deal and creates the background in which bids and quotes are made ie will your company be charged at ‘normal�rates, or maybe a premium, or a ‘loss-leader� Will a variation provide the opportunity for tendered contracts to be increased to a more ‘normal�pricing structure?

This course examines these issues in relation to the procurement of both goods and services (“contracts� and from the perspectives both of the buyer and the supplier.

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