For most business men, everything goes for the right price, while this concept have worked for many, it has also landed some in an incredible loss and on the extreme, it has brought many flourishing business to it’s lowest point as the price charges backfires to the detriment of the business group. Deal hunting and acquisition is one of the most important aspect of most private consultancies and business establishments, finding the right deals and working towards winning the bidding to handle such deals are what makes every organizations very successful or a total failure
Deal hunting requires having a good idea of the company’s capacity and their chances of being able to handle these deals to the satisfaction of their clients, while most business groups will have to source for these deals and fight to convince their potential clients to award them these contracts, some other business groups are lucky enough to have the clients approaching them with proposals and contracts. Whichever way it comes, it all boils down to reaching a mutual agreement on the price which the client has to pay for these deals. Payments for most proposals and business deals, be it import and exports, construction deals or retail deals are done once and for all hence the client pays once and the business man or group takes care of the surplus or shortages thereafter. Hence making a getting the perfect charge/price for the proposal is paramount. To do these efficiently, the following has to be considered.
The first part of every deal is the deal itself, what’s the deal?, every deal is connected to the business group, in a way, the sort and calibre of deals which a business institution receives depicts their capabilities and efficiency, investments are very big risks and investors seek to reduce the risk factors by awarding the contracts to a very capable company or business group, hence bigger business set-ups usually receives bigger business proposals. These deals could be inform of:
Import and export deals: No country is capable of being absolutely self-sustaining, hence there’s always the need to make up for these inabilities by importing the goods which are not produced in the country from another country which sometimes shares no boundaries with the country in question. Import and export traders hence takes the mantle of making business deals with these foreign companies and importing these unavailable goods into their country and also selling the surplus from the goods produced in their country to other countries.
Consultancy and civil constructions: Business consultants are professionals in a specific business area, they have an outstanding knowledge as regards such business and hence are in a very good position to give advice on such trade lines or projects related to them. Consultant in civil constructions are also engineers who are knowledgeable about a civil constructions and building of structures, these bodies receives proposals of business and construction projects respectively and are required to give useful advice as regards them and sometimes carry out these tasks completely for their clients.
Retail trading and public supply: imported goods or internally produced goods are meant to reach out to as many people as possible if not everyone in a country, the producers and the wholesalers are incapable of circulating these items to everyone in the country, hence the needs for retailers, retail traders receives proposals and deals of goods distribution to the public in smaller amounts, retail trade groups ranges from large business set ups to kiosks and even close doors traders. These bodies received the goods from the wholesalers and sells them to the public at an agreed rate.
Now, what’s the price
Having received a good business deal which suits your business, or having won a deal, the next task which a business man faces is determining the right price to charge for the work he is about to do, a mistake on this issue will unarguably result in a very negative effect on the business or the company as most proposals are paid for in a once and for all scheme thus a good business should be able to consider most or every factors (if possible) that concerns this deal and agree a suitable price for the project he is about to undertake, these factors includes:
Resources are the lifeblood of every business, the utilities at the disposition of a business man determines to a large extent what he is capable of achieving with his business ideas, these resources could be in form of human resources, material resources or Time resources.
Human resources: The intellectual abilities of the business group and its owner are indispensable to the successful running of the business and should be considered while accepting or pricing any proposal, a good business man takes into consideration the availability of the adequate human power and the efficiency of these human resources available, the qualifications of his employees and their ability to assist in carrying out this projects, the wages of these workers and their maintenance cost should also be considered while determining the price for the project. In case of insufficient human resources, the business man also considers the cost of employing more hands in relation to their capabilities as higher qualifications only means higher charges.
Time resources: As the popular saying goes, time is money, how much time do you have to complete this project, the clients states the time required for most deals and come to mutual agreement on the suitable time frame for the completion of the project. A little time interval only means a more intense approach and increased efficiency thus incurring higher management costs. This most be considered amongst other factors and be effectively compared when marking out the price for any proposal.
Material resources: Apart from the human resources and the time at the disposition of any business man, material resources also ranks high in the scale of resources and this includes all equipment, facilities and utilities available for the completion of the proposal, the cost of maintaining the existing equipment, repairs in case of malfunction and also the cost of purchasing new equipment should be considered while accepting or determining the price for a business proposal, this might be in form of transportation means, purchase of working tools, customer care resources, and promotion costs. These should be considered before reaching a price.
Feasibility and available discounts
A good business man or business group should be able to guess the fate of the project with their available resources, after considering the resources stated above in comparison with the price offered by the client, a good business man should consider the feasibility of the projects relative to the price. At a certain price in relation with the risks and available resources, some proposals are huge gambles, while some are very feasible and the business man has higher chances of completing his client’s tasks without much stress and also making reasonable gains from the work done. One’s ability to consider the feasibility of the project is a huge advantage and will unarguably go a long way for any business man.
In a seemingly impossible task, there’s the need to consider available discounts as a means of generating more resources, the project group or owner, should also consider the aspects of the resources where there could be reasonable discounts, this will help in saving some resources for him and seeing the project to completion amidst challenging odds, these discounts should be big enough to cover for the shortcomings in terms of resources.
Keeping it moderate
Moderacy is also a virtue in business relationships, this makes for mutuality and higher turn over rate in any business, while putting up a price for any project after considering the resources and the task and also the gains, a good business man endeavors to keep the price on a moderate level in a bid to ensure that his client also feels satisfied with the price and to keep him in a good mood to do business with him next time. A good business man is not a one hit individual, the ability to maintain mutual relationship with your client is also paramount amidst the challenges in terms of resources and feasibility. The available discounts and opportunities to cut down expenditures will enable to business man complete the project at a lesser price, a good business man cuts down greed and pegs the price at an amount which is considerate for his client, even though this means making smaller gains, but his will keep the client coming back for more and hence a higher turn over rate which keeps the business lively and brings in more deals and proposals.
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