Product Pricing Studies

Keeping track of competitor product price points, while constantly managing your own, is crucial for continued well-being in the fiercely competitive government marketplace. The government customers' bandwidth for discrimination between bids for commodity items is limited to:

price of life cycle ownership;
past performance, to some extent; and
"best value," which relates to value-added activities and service.

The Freedom of Information Act (FOIA) serves to provide information on successful bidder product prices. Prices produced by government-wide acquisition contract (GWAC) IDIQ and other FOIAs are gamed and devoid of uplift detail. Accordingly, they are little short of useless for divining a company's or division's likely product pricing for future opportunities. In short, they may as well be encrypted with the incumbent's view of reality demand being the key.

CAI/SISCo has long perfected an in-house competitive product pricing estimation capability aimed at building up pre-gaming product pricing rather than attempting a price-down analysis of gamed prices produced by FOIAs. Our Price-A-Lator™ tool develops detailed views and build-ups of product prices at the product level.

As custom studies, CAI/SISCo can develop product prices for competitors or competitive teams. For bid teams, prices are developed using targeted team composition and considering corporate personalities and roles and responsibilities. The results generated are calibrated with actual bid prices gleaned from our FOIA database.

The deliverable is a Price-A-Lator™ model populated with the list prices, discounts and burden elements (material acquisition, handling, and sometimes G&A uplifts) for a suite of products. It is delivered for continued use by the client.

To request a proposal or more information about any of our services and
products, please e-mail Tony Constable or call him at (301) 807-8171.