Pricing a contract

**eek** · 2 March 2012, 20:02

Originally posted by Old Greg View Post

So, I have been 'long-listed' for a very senior programme management contract. It would normally be way out of my league in terms of seniority but I have a very speicalist skill-set and experience of deliveing very similar change projects at a project management level - I do have programme management experience as well.

I need to quote for the work. Do I base my quote on the contract (which would be an outrageous amount by the standards of my daily rate), or just inflate my normal daily rate a bit. My instinct is the former as I don't want to appear too junior through having a low rate that sticks out. However, if I go with my instinct, might they look at it and say, 'You're not worth that!'... but then why would they be offering me the contract.

Any advice or experience out there?

Cheers

OG

Split it down the middle. Not knowing what the rates are I can't give specifics but what does £100 off the top end look like.

**Sockpuppet** · 2 March 2012, 20:57

Its easier for you to drop your price than it is for them to raise theirs one you start to negotiate.

I'm also a big believer in if you don't ask you don't get.

**nomadd** · 2 March 2012, 21:28

Originally posted by Sockpuppet View Post

I'm also a big believer in if you don't ask you don't get.

This^

I've pitched on a couple of contracts in the past that I thought were way out of my league. I pitched high, as I really didn't expect to get the jobs. Ending up getting both of them, and once I'd started I was glad I hadn't dropped my rate. Turns out that in both cases it was just me and IBM and then Accenture left in the bidding - and you can imagine what their outrageous rates looked like (...for a pimple-ridden schoolchild who possessed nothing more than a smart suit and a can-do attitude.)

I'd say go medium-high, which should reflect what you are worth, but also not pee them off too much based on the current state of the economy.

If not that, then close your eyes and role a dice.

**Wanderer** · 2 March 2012, 21:54

Originally posted by Old Greg View Post

Any advice or experience out there?

Don't go in cheap or they won't take you seriously. Reassuringly expensive is my motto.

Oh, and you're buying the beers for all of us if you get boomed!

**Moscow Mule** · 2 March 2012, 23:13

You never want a client to accept your first offer.

You'll never know how much you could have fleeced them for...

**Old Greg** · 4 March 2012, 23:30

I am inspired. Going in at a quality brand price.

Thanks all.

**yasockie** · 5 March 2012, 10:24

These cheap bastards will now go in with their lowball offers and undercut you by what you just raised

But seriously as others say as it is pretty difficult to estimate the actual cost of such a venture, go high and negotiate later on.

Is it a private venture or a public institution? In the case of latter, it is almost always a requirement to publish the criteria upon which they will be choosing...

**NorthWestPerm2Contr** · 5 March 2012, 11:26

Originally posted by Old Greg View Post

I am inspired. Going in at a quality brand price.

Thanks all.

Let us now how it goes, I am quite intrigued now.....

**Old Greg** · 5 March 2012, 12:48

Originally posted by yasockie View Post

These cheap bastards will now go in with their lowball offers and undercut you by what you just raised

But seriously as others say as it is pretty difficult to estimate the actual cost of such a venture, go high and negotiate later on.

Is it a private venture or a public institution? In the case of latter, it is almost always a requirement to publish the criteria upon which they will be choosing...

It's a private sector client undertaking work in the public sector sphere.

Pricing a contract