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Why should an organizational buyer want to get competitive bids?
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What is the difference between the institutional and government market?
insitutional markets consists of churches,hospitals,schools that provide goods and services for people. government markets major buyer in business markets. calling for bids.
Who is a person who conducts sales by bidding?
This selling method is called an "auction". The person calling out or announcing the prices (or bids) is called an "auctioneer".
How do you write a letter to supply goods to a company?
A letter to supply goods to a company would be a sales letter or a cover letter to a bid (bids having been requested for specifics and pricing).Using a standard business letter format, the letter should include:first paragraph, introduce your company and the products you provide. Include brief information about your company, company history, company's successes, etc.; keep it brief, you don't want the recipient to lose interest before getting to the purpose of the letter.second paragraph; for a sales letter, tell what product you supply and pricing, or refer to an attached price list.for a bid cover letter, refer to what the recipient will find in the enclosed bid; do not list specifics and pricing that are found within the bid.third paragraph, provide the recipient with all contact information necessary for the recipient to follow up with you. Always thank the recipient for their time and consideration.Be sure that a price list or a bid includes any time frames or other contingencies that may affect pricing or delivery if applicable.
Customer knowledge of service prices?
Consumers have what is known as internal reference prices for services. A reference price is a price point in memory for a good or a service and can consist of the price last paid, the price most frequently paid, or the average of all prices customers have paid for similar offerings.A) Service variability limits knowledge.Eg In life insurance, it is very difficult to get comparable price quotes. Firms can offer an infinite variety of combinations and permutations leading to complex and complicated price structures.( Whole life vs. term), features (different deductibles) variations associated with customers( age, health risk, smoking or non - smoking).Very few insurance companies offer exactly the same features and the same prices. Only expert customers can specify the options across providers and find an accurate comparison base.B) Providers are unwilling to estimate prices.Many providers are unable or unwilling to estimate prices eg in the legal or medical profession. Lawyers (in a trial) and doctors (for an operation) often cannot tell what the services will involve until the delivery is well underway.In B2 B situations companies obtain bids or estimates for complex services such as consulting or construction, but this is typically not undertaken with end consumers. Therefore they often buy without advance knowledge about the final price of the service.C) Individual customer needs vary.(Eg, Type of haircut, length of hair, conditioning treatments). In a hotel (size of room, time of year, type of room availability, AC/non- Ac, individual vs. group rate).Getting braces/ tooth replacements from a dentist or help from a lawyer are highly dependent on customer's idiosyncrasies and hence differences in customer's needs play a strong role in pricing.D) Collection of price information is overwhelmingRarely are price comparisons available for competing services under a single roof (as opposed to consumer goods in a retail shop where prices can be readily compared).Implications for managers• The fact that consumers often possess inaccurate reference prices for services has several important managerial implications.• Promotional pricing (as in couponing or special pricing) may be less meaningful for services for which price anchors typically do not exist. This is probably the reason why price does not feature as frequently in service advertising as it does in product advertising.• Promotional pricing also has the danger of the customer taking the promotional price which he sees in as the anchor price for future reference.• The general absence of accurate reference prices also suggests that advertising actual prices for services that the customer is not used to purchasing, may reduce uncertainty and overcome an inflated price expectation for some services.• Thus a market research firm that quotes USD 10,000 for its market research would be informative to a business customers who only had a vague idea and would be guessing it would cost around USD 100,000.• By featuring price in advertising, the company overcomes the fear of high cost by giving readers a price anchor.
Why purchase specification important to a food establishment?
Without specifications, it is not possible to obtain competitive bids for the product.
How do government agencies evaluate competitive bids?
Government agencies also considered service, contractor guarantees, past experience with particular contractors, and options offered by individual bidders when evaluating bids.
Why purchase specifications important to a food establishment's operation?
Without specifications, it is not possible to obtain competitive bids for the product.
What is electronic tendering system?
It is like reverse auction, in which a buyer requests would-be sellers to submit bids; lowest biddder wins.
What exactly is a reverse auction?
In a reverse auction, a buyer puts a contract out for bid. Sellers offer bids on the item, competing to offer the lowest price. The price generally decreases as the auction progresses with sellers competing to offer the lowest bids.
Are publicly held companies required to obtain competitive bids for services?
Public held companies have no legal requirement to obtain competitive bids. However, it is a good common practice to gather competetive bids; and, may therefore be policy and procedure in most companies. Bidding is also a good idea in a public company to give the shareholders a sense of security that the company follows good business practices and not wasting money by awarding over-priced contracts.
Why should you beware of kid-bids or bids by children?
Kid-bids or bids by children could potentially violate the terms and conditions of online auction platforms, often requiring users to be of a certain age to participate. Additionally, children may not fully understand the consequences of placing bids, leading to unintended purchases or liabilities.
What are the rules of a reverse auction?
A reverse auction allows a buyer to put out a request for bids on a contract or service. Those who wish to complete the service then bid for the chance to complete it, and the one with the lowest bid wins it, and is payed that amount by the buyer in exchange for the service.
Where can one find more information about bids asks and spreads?
There is information available on the web for bids, asks and spreads. The amount in which the asking price in an auction exceeds the bid is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price the seller is willing to sell it.
How many bids should I get before choosing a contractor?
Before choosing a contractor you should check credentials and the better business bureau. Once you do that typically you can get three or four bids and choose from there. Alot of times there prices may even be negociated.
What is the difference between the institutional and government market?
insitutional markets consists of churches,hospitals,schools that provide goods and services for people. government markets major buyer in business markets. calling for bids.
How much are bids on Beezid?
It depends on which bid pack you purchase. They range from $27 for 30 bids to $550 for 1000 bids. For example, if you purchase a bid pack for $27 for 30 bids, you'll receive an extra 25 bids totaling 55 bids. That comes out to be only $.49 per bid.
