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: 108 pairs stockings anti embolism thigh high medium 2017-10-03 11:00 ZNQ 775/ 17/ 18
Supply: 150 pairs stockings anti embolism thigh high x large 2017-10-03 11:00 ZNQ 776/ 17/ 18
Supply: 6360 units nebulizer aerosol child 2017-10-03 11:00 ZNQ 835/ 17/ 18
Supply: 1100 pkts electrodes E.C.G adult pkt/50 2017-10-03 11:00 ZNQ 834/ 17/ 18
Supply and deliver 10L Buckets plastic. Green, Yellow, Blue, Red and White Colours. QTY: 32 Units 2017-10-06 11:00 ZNQ: 593/ 17- 18
Supply and deliver SHE Bins 10L. QTY: 48 Units 2017-10-06 11:00 ZNQ: 591/ 17- 18
CapeNature seeks the services of a skilled project management team and contractor to construct a recreational area including a swimming pool and shaded lapa at the Algeria campsite in the Cederberg Wilderness. The contractor must have a minimum level 3GB for the installation of the required pool and recreational area. 2017-10-20 11:00 WCNCB 02/ 09/ 2017
Supply & delivery of plumbing material 2017-09-29 11:00 ZNQ 276/ 17/ 18
CapeNature requires the services of an experienced Contractor to design, supply building material, and construct for the Upgrade of Tierkloof bushcamp at Gamkaberg Nature Reserve. 2017-09-22 11:00 WCNCB 03/ 09/ 2017
Supply: 5030 units nebulizer aerosol adult 2017-10-03 11:00 ZNQ 833/ 17/ 18
CapeNature seeks a Service Provider to erect a game proof boundary fence at the Ganzekraal Conservation Area west of the R27 near Mamre. 2017-10-20 11:00 WCNCB 04/ 09/ 2017
Supply trial frame for refraction 2017-10-06 11:00 ZNQ 365/ 17/ 18
Tubes cycle kenda 4.80/ 4.00-8 tr 13 SABS approved. Quantity: 10units 2017-10-03 11:00 ZNQ No.853/ 05/ 17
Supply ophthalmic desktop autoclave, 5L, positive pressure pulse displacement 2017-10-06 11:00 ZNQ 370/ 17/ 18
Appointment of a capable service provider to provide to raise funds and host the events aspects of the annual Andrew Mlangeni golf day and ministerial golf day. 2017-10-20 11:00 SRSA005/ 2017- 18
Supply puff tonometer, desktop 2017-10-06 11:00 ZNQ 367/ 17/ 18
Major service, rewind and replace fault parts for air supply fan motor at North block plant room & other services (see description for details) 2017-10-03 11:00 606/ 05/ 17
Supply surgeon’s stool with fully adjustable backrest and armrests used in cataract surgery 2017-10-06 11:00 ZNQ 369/ 17/ 18
Supply hydrocollator hot pack unit, 15L 2017-10-06 11:00 ZNQ 368/ 17/ 18
Appointment of a Fulfillment and Warehousing Services for South African Tourism Central Europe. 2017-10-16 12:00 SAT CENTRAL EUROPE 001/ 17

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... 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.