Price To Win: What It Is And When Estimation Gets Involved

Author: · April 7, 2012 · Filed Under General  - 1 Comment(s)

I am continually amazed at the wide variety of opinions about what Price-To-Win is and who plays what role in Price-To-Win.

I have spoken to some customers that are offended by the term Price-To-Win.  They hear it as “trick the customer to win.”  Of course that is not what price-to-win is all about.  Price-to-Win is about choosing the most affordable alternative that fulfills the customer need and that also will be successful against competition.

Price-To-Win Goals

Price-to-Win identifies the correct balance of capability that can be delivered to the customer at the value the customer wants. Price-to-Win provides management insight for:

  • Competitive positioning
  • Strategic partnering
  • Risk tolerance
  • Customer relations
  • Optimal bid strategy

This information is derived by:

  • Market inputs
  • Engineering identification of viable alternatives
  • Engineering architectural design of each alternative
  • Cost and risk analysis of alternatives and risk alternatives
  • Price analysis (cost and price are two different issues)

Price-To-Win 8 Step Process

  • Step 1: Gather market intelligence: Marketing personnel identify competitors possible strategies and
  • Step 2: Determine requirements & features
  • Step 3: Sketch out Architecture Design
  • Step 5. Determine viable alternatives
  • Step 6: Cost Analysis & Estimation of Alternatives
  • Step 7: Select best alternative
  • Step 8: Establish price

Galorath Role in Price-To-Win

Galorath and SEER primarily support the estimation and analysis of alternatives, taking inputs from engineering, marketing and others.  The result of this includes cost and cost risk.  Once that cost is determined, price analysis will determine the actual price to bid. This price may vary significantly from the cost based on business decisions.

Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page, call us at +1 310 414-3222 or click a button below to ask sales questions, sign up for our free library or schedule a demo.


One Response to “Price To Win: What It Is And When Estimation Gets Involved”

  1. Frank Vogelezang on April 11th, 2012 11:38 pm

    Excellent process to determine the right Price-to-Win based on the requirements and the affordability level from the customer. SEER is a very good support for this process. This is what we at Ordina do in the Estimating part of our process.

    For the ultimate Price-to-Win you still need the Beat-the-Competition part to get the contract when you are bidding in competition. This is what we at Ordina do in the Estimating part of our process.

    More information on our model is available on

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