Tracking Cost Versus Developing Pricing for Bids
QUESTION: Paul, Im confused about how to determine what our pool(s) and base(s) should be for our proposal writing. We have both commercial and non-commercial rates for many types of services. These rates vary greatly depending on what we do, how we do it, how long we do it, and even for whom we do it. Our pricing policy is written down but there are always special agreements and our non-commercial rates are generally lower. All of our direct and indirect costs are built into our rates. How do I determine what our labor costs are? What could I possibly use as a base? What do you think? RESPONSE: Wow! A lot of questions on your mind - let's begin with an important concept.......
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