Pricing and the Public Sector

By: Gloria Murray. Published: 14 Jan, 19
This might upset some people, so I'm sorry about that! !

A couple of years ago I was running a pricing seminar and a member of the audience asked me how she could increase her prices when she was bidding for public sector work, when the drive there is to drive business down on price. I told her that my recommendation to clients is not to bother bidding for this work. It takes a long time and a lot of resources for small business to do this and when price is prioritised above quality it’s very difficult to make any profit.I know some businesses make a good living out of the public sector, but many don't.

Basically the Commons Public Accounts Committee reached the conclusion that the government has sent a clear signal to contractors that cost was prioritised above all other factors meaning that the quality of service suffers. We all know that if you have the factors of fast, good and cheap you can only choose 2 out of 3. Something has got to give. Read the full article here https://www.insider.co.uk/news/carillion-collapse-exposed-fundamental-flaws-12881727