Issue Date: 
Tuesday, September 20, 2016

10 Principles When Pricing Your Tender

We are often asked how to work out a tender price? But there is no straight answer because every tender is different. The fact is that a tender for the supply of furniture will have a different pricing structure to that of the supply of food for a government function. So to provide individual pricing techniques would be very difficult.

In general, there are ten points that must be considered when calculating price. These are:

  • Price is king – ensure that you price your product or service as low as possible in order to stand a chance of winning a tender.
  • Be precise; when the product supplied is R101-26 then state it in the tender response as R101-26 and not as R101-00 or even R102-00. Small differences like these can result in large amounts that can be lost, depending on the size of the tender.
  • Ensure that all the costs of delivering the product is taken into consideration; double check your pricing – omitting something small can come back and bite you later on.
  • Confirm prices of goods with your suppliers – prices can change very quickly due to increases in fuel prices or exchange rate fluctuations.
  • Always remember to add Value Added Tax (VAT) at 14% to your price especially when it relates to Government tenders. Most tenders state that the price must include VAT.
  • Ensure that all other applicable taxes are included in the tender price.
  • The most important piece of advice on Pricing: never bid too low or too high;
    • Bid Evaluation Committees are well informed and they will know if a bid is too low or too high;
    • Bidding too low or too high might lead to a tender response being disqualified or marked as non-responsive;
  • Pricing can be influenced by law as well – there are several industries in South Africa, such as the cleaning industry, which has minimum wages payable to employees;
  • A suggestion is that if your usual mark-up is 25% then tender perhaps at 18% to 20%. Remember that you are going to save on direct costs as well as on other expenses such as advertising, telephone costs and much more. Use these savings to lower your price.
  • Remember that in Government tenders you are going to be scored on your price and currently price counts for 80 out of 100 points for tenders less than R1 million and 90 out of 100 points for tenders with a value of more than R1 million. The bidder with the lowest price receives the most points.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com.

Learn to earn

Title Closing Date Tender No.
Supply: 3 x gbc fusion 3000l laminator a3 2018-02-26 11:00 GM11800634
Supply and delivery of duffel bag to the saps for a period of two (2) years 2018-03-16 11:00 19/ 1/ 9/ 1/ 63TD (17)
Routine (preventative) and breakdown maintenance of eleven (11) Fuji Frontier Digital Minilab printers for a period of three (3) years 2018-03-27 11:00 Bid no. 19/ 1/ 9/ 1/ 98 TR (17/ 18)
Annual Servicing of Pharmaceutical Fridge At KwaDabeka Community Health Centre. 2018-03-02 11:00 ZNQ 649/ 17
Supply Only Red Central Storage Areal Container As Per Specification At Halley Stott Clinic 2018-03-02 11:00 ZNQ 647/ 17
Supply Only Red Central Storage Areal Container As Per Specification At KwaDabeka Community Health Centre Clinic 2018-03-02 11:00 ZNQ 648/ 17
Supply Only Red Central Storage Areal Container as per specification at Clermont Clinic 2018-03-02 11:00 ZNQ 646/ 17
Procurement of Inductively Coupled Plasma - Optical Emission Spectrometer (ICP-OES) instrument. 2018-03-09 11:00 NMISA (17- 18) T0061
Supply Suture Vicryl V486g 90cm 40mm Reverse Cutting as per specification 2018-03-12 11:00 ZNQ 1139/ 17- 18
Travel Management Bid For 2018-2020 2018-03-16 14:00 CBRTA/ HO/ 0040
Re-Advert - Appointment of a service provider for the rollout and management of biometric learner attendance monitoring system 2018-03-02 11:00 013- 2017/ 2018
Procurement of supercritical fluid extraction - chromatography system with UV detector and fraction collector 2018-03-09 11:00 NMISA (17- 18) T0058
Supply suture 1g 75cm/3/8c 60mm cutting needle as per specification 2018-03-12 11:00 ZNQ 1138/ 17- 18
Supply: Caesarean section drape with pouch and incise and with mayor cover, disposable. 2018-03-12 11:00 ZNQ 1022/ 17- 18
Supply: Wound dressing double hydrocolloid hydrogel containing pectin and sodium CMC 15g - 3000 boxes, please provide sample. 2018-03-06 11:00 67/ 17- 18
Re-Advert - Provision of insurance services by an insurance underwriter 2018-03-02 11:00 016- 2017/ 2018
Appointment of a Group Risk Insurance/Assurance Provider for all CIPC Employees 2018-03-26 11:00 CIPC BID NUMBER: 30/ 2017/ 2018
Supply Wound dressing (triple hydrocolloid dressing with polyurethane foam 20 x 20 cm) - 3000 boxes 2018-03-06 11:00 438/ 17- 18
Rendering a hospitality service, including a small retail component, aligned with the Mcgregor Museum brand, in the Mcgregor Museum shop located at the premises known as the Mcgregor Museum. 2018-03-09 11:00 NCDSAC- 003- 2017
Supply Wound dressing (100% soduim carboxymethylcellulose NaCMC fibrous hydrocolloid dressing 15 x 15 cm) - 3000 boxes. please provide sample 2018-03-06 11:00 437/ 17- 18

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.