Pricing Project delivering £500k+ per annum Pricing Strategies Case Study

The Situation

The business had received an invitation to tender from an international Bank with a tight timeframe to respond. Winning the tender would result in a new and prestigious client. The contract was worth around £5m in sales each year for 3 years.

The Purpose of the Project

To manage the modelling of the commercial terms and pricing in partnership with the sales team. The goal was to win the contract.

The Project

The contract involved taking responsibility for over 150 people (TUPE) and large amounts of equipment across several countries. The tender response required a high level of detail and a timeframe of 2 weeks which was very short relative to the tender’s complexity and size.

Jess Coles (Emerson Nash) worked alongside the sales team to:

  • Understand the tender’s requirements from an operational, commercial and pricing perspective.
  • Digest the data provided and help the sales team formulate the solution that was commercially attractive to the both us and the potential client.
  • Create modelling for people and equipment, consumables usage charging mechanisms and potential changes so we could estimate profitability under each scenario
  • Model the Foreign Currency scenarios and build in mechanisms to manage large fluctuations
  • Choose the best solution for both parties (us and client) and submit to the client.
  • Help manage the queries and objections from the client

This tender’s response was submitted within the timeframe, with a commercially strong solution.

The outcome

The contract was won by the client, resulting in an additional £500k+ in gross profit being added each year.

The operational delivery was closely reflected by the modelling we had undertaken during the tender process and the actual profits slightly higher than our modelling due to additional operational savings found after the contract commenced.

The client provided a great case study to support additional contract wins with other clients.

About the Business

  • A fast growing (30% per year) outsourcing business with nearly £200m in sales
  • Operating in multiple countries in Europe, US and Asia
  • Regularly tendered for new multi-million pound contracts

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