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 with carpentry material 2018-06-04 11:00 ben03/ 2018- 2019
Supply and Deliver Filters to Main Air Handling Units. 2018-06-01 11:00 ZNQ0199/ 18/ 19
Port St Johns - : Repair & renovation without site clearance & rezoning certificate 2018-06-15 11:00 MTH 09/ 2018
Supply: 1. Patient referral letter- (qty) 50 packets - (x 50 sets per pkt) 2. Folder out patient record- (qty) 150 packets (x 250 sets per pkt) 3. Cover health service- (qty) 200 packets- (x 100 sets per pkt) specifications attached to the document. 2018-06-01 11:00 ZNQ 19/ 18- 19
Upgrade of Kitchen and Kitchen Equipment 2018-06-22 11:00 CPT 1001/ 18
Supply Two Vaccine Fridges. 2018-06-05 10:00 52/ 18/ 19PCHC
Supply: 750 - chromic 1 gut absorbable suture taper heavy strand - 50mm - 1/2 circle - 75 cm - metric 5- (12 units in a box) 2018-06-06 11:00 63/ 18
Construction of new Randfontein Community Health Centre 2018-06-18 11:00 DID06/ 05/ 2018
Supply 750 Boxes - Chromic 2 Gut Absorbable Suture Taper Heavy Strand 50MM - 1/2 Circle - 75CM - Meric – 6- ( 12 Units In A Box ) 2018-06-06 11:00 64/ 18
Servicing of Earth monitoring boards in theater, ward 9, ICU, and NICU x 10 units 2018-06-01 11:00 ZNQ 298 / 18 / 19
Service of Infrared Detection 2018-06-01 11:00 ZNQ0197/ 18/ 19
Service and Repair of Hydroboils 2018-06-01 11:00 ZNQ0198/ 18/ 19
Servicing of Laundry equipment consisting of x 11 machines 2018-06-01 11:00 ZNQ 295 / 18 / 19
The supply of medical locums of all grades and specialties including standby, on call (exclusive of nursing and administrative personnel) to all hospitals/ institutions under the Western Cape Department of Health for a three (3) year period. 2018-06-22 11:00 Western Cape: Department of Health: Supply Chain Sourcing
Completion contract for the repairs and maintenance works at Middelburg Nursing School. 2018-06-15 11:00 NDOHF 01/ 2018- 2019
Servicing of Atenuators in room 14 and theater roof ducting x 5 2018-06-01 11:00 ZNQ 296 / 18 / 19
Construction of Nyaniso Chc (Phase 2) Community Health Centre and External Works 2018-06-25 12:00 CDC/ 134/ 18
Request for proposals from reputable and suitably qualified research houses to submit proposals to conduct a departure survey for the South African Tourism 2018-06-18 12:00 SAT 129/ 18
Annual servicing of theatre tables x 4 2018-06-01 11:00 ZNQ 232 / 18 / 19
Request for proposals from reputable and suitably qualified research houses to submit proposals to conduct a domestic tourism survey for the South African Tourism 2018-06-18 12:00 SAT 128/ 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.