Welcome back to Business English Pod for today’s lesson on pricing strategy. This is the second of a pair of lessons on project management English and scoping new work for a client.
Every project is its own animal. Sure, you might run different projects with similar tools and approaches, or apply standard processes. But with different clients, at different times, and with even small differences in inputs, each project is different. And that means pricing is different.
Once you’ve talked with a client to clarify and nail down the project scope, what happens next? Well, the client will want something on paper – whether that’s a full-blown proposal and bid or a simple quotation. And one of the most important things they’ll be looking at is price. So as a team, you need to figure out a strategy to bid on each project.
Your pricing strategy is going to depend on a few things. First off, it’s going to depend on your capacity and the client’s perception of value. Then you’ll have to figure out your bid strategy, which may work upward from a minimum viable product. Or you may take a different approach like hourly pricing. And there are always intangibles you need to take into account when deciding how to price your bid.
In today’s dialog, we’ll hear Jill and Martin, who work for a software development company. They are working out a pricing strategy for a project that Jill has already scoped. They’re trying to figure out the right approach for the two options they’re proposing to the client.
1. What is the first concern Jill expresses during the conversation?
2. How will they direct the client toward their alternative approach?
3. How will the client’s timeline affect their pricing strategy?
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