Price to Win is both a process and a result. Price to Win as more than a number, but could be best defined as the cost-capability tradeoff that embodies your company’s strategy.
Price to Win, the process, identifies the position your company needs to achieve to meet your company’s business goals and objectives. It does not necessarily mean winning. You may want to position with your customers, but not actually win a program. You may need to bid on a program that you don’t actually want to win because it doesn’t fit your corporate objectives. The Price to Win process is designed to respond to the government’s needs, and applies several factors (such as gaming strategy, aggressiveness, fee and corporate interest) to best identify Price to Win, the position.
The Price to Win position is the actual cost-capability tradeoff that your team will present to the government in your proposal response. It is a carefully deliberated position that includes “cost + strategy” to represent your overall business strategy. Remember, your company’s corporate strategy is the biggest driver in making business decisions, and the biggest factor in determining price to win, the position. Not cost plus fee.