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Price= Cost + Strategy

With sequestration as an ongoing threat to the federal contracting community, more companies are getting more creative in their strategies.

At Richter & Company, we believe that Price = Cost + Strategy.  Overall business strategy is the biggest driver in making business decisions, and the biggest factor in determining the ultimate price to win.  Not cost plus fee.

If a company is looking to gain an important federal customer, they may invest in the program so much that they bid zero fee.  If a company is extremely aggressive in going after a specific program, they may create new overhead pools to bring down their wrap rates.  Companies offering goods will often pressure their suppliers; companies offering services will get creative in hiring at specific labor percentiles.  Management challenges drive down the total evaluated price.

Once a strategy has been decided on, a team knows the mentality and the creativity they need to take in pursuing a specific opportunity.  Richter & Company’s seasoned professionals can help you identify strategies your competitors are likely to take, and help your company determine the ultimate price to win.


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But, What About Us? The Importance of Self Assessment in the Federal Contracting World

Your proposal team dutifully takes on the business development process for most projects.  But as B&P dollars are cut in an uncertain Federal climate, your team has taken to cutting corners where they can.  Your team’s morale has taken a hit, and is struggling to come up with creative solutions to respond to RFPs where “best value” increasingly means lowest cost.

In today’s hypercompetitive market though, there are a number of dark horses.  Companies are more and more creative, and aggressive, in their strategies to win more business.  So what if you assessed a program from a different angle?  What if you focused on how your competitors see you?

Richter & Company’s core services of Competitive Analysis and Price to Win focus on looking at our customer’s competition.  Generally, a Competitive Analysis looks at all companies competing for a specific opportunity.  Then, for our Price to Win analysis we focus on three targets for our customer, building wrap rates and likely strategies, before evaluating a final total evaluated price (TEP).

But Richter & Company’s OutsideIn™ analysis focuses on you as the competitor.  We identify how your competitors are likely to perceive your capabilities and solutions.  We use open source, non-proprietary data, as in our other analyses.  Our analysts offer an unbiased view of your capabilities, free from the influence of your corporate management.

Looking for a competitive edge?  Contact us today for more information on our OutsideIn™ analysis.

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Investing B&P Dollars

Retail companies that are struggling often cut advertising dollars when budgets are tight.  In the Federal contracting world, Bid and Proposal dollars are often the first to face the chopping block.  In both cases, the very thing drumming up new business is cut for lack of immediate return.

But what if retail stores knew their advertising efforts would equate to new sales?  What if your business development team knew their B&P dollars could yield a contract win, and a significant return on investment?

Richter & Company’s core services are designed to help you win.   Our Competitive Analysis and Price to Win services offer your team the information you need to best position yourselves to win an opportunity.  Our seasoned consultants use reliable processes and proven techniques to offer your company “news you can use” to win more Federal contracting dollars.

Make your B&P money work for you.  Instead of spending money on any opportunity that crosses your radar, invest in the ones you can and should win.  Contact Richter & Company for more information about our winning services.

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The Fear of Sequestration

Despite the fact that sequestration was set up as a “worst case scenario” incentive to encourage politicians of all walks to actually get along, March 1st marked the date of the deadline and the start of automatic “across the board” budget cuts.  The $85 billion in cuts make up about three percent of the Federal budget. Continue reading The Fear of Sequestration

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We Never Cross the Line

To avoid conflicts of interest, we never cross the line.

Our work focuses on competitive analysis.  To do this work, we perform research to identify the detailed solutions and strategies companies are likely to employ to beat our clients. This work is ethical, moral and legal when the research relies on open source, non-proprietary data – but most definitely unethical, immoral and illegal when proprietary data is used.  Continue reading We Never Cross the Line

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Insy and Outsy

Building an effective in-house Price To Win practice

No question, we live in trying economic times.  It’s bad enough that Federal budget cuts are the new reality; it’s worse when our elected officials can’t even pass a budget on time.  Forget fear and doubt; uncertainty is the big thorn in our collective paws.

For most companies, severe belt tightening has been the response.  Benefits are cut; overhead is eliminated; general and administrative expenses are examined through microscopes; insourcing, not outsourcing, becomes the new norm.

Can you build an effective internal price to win practice?  Absolutely – if you understand and accept both the benefits and the costs. Here are a few observations from many years of practice…  Continue reading Insy and Outsy

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My Grown Up (Federal Contracting) Christmas List

Dear Santa,

I’ve been thinking about my Christmas list for quite a while now. I’ve had time to since the Government has had all of my programs on hold for the last few months. The world of contracting just isn’t the same as it used to be. So this year, I’d really appreciate. . . Continue reading My Grown Up (Federal Contracting) Christmas List