Pricing and Sales

Question 1

A written document provided by a manufacturer in response to an Invitation to Bid.

Answer 1

Bid

Question 2

The price a manufacturer bids on a given project.

Answer 2

Bid Price

Question 3

The process of making sure a manufacturer has sufficient resources—such as raw materials, parts, and people—to be able to complete the work it has contracted to perform.

Answer 3

Capacity Pricing

Question 4

A legally binding agreement in which a company agrees to provide products and services, as defined in the agreement, for a certain amount of money, within a certain period of time, and according to certain quality standards

Answer 4

Contract

Question 5

What it costs to produce, package, and deliver a good.

Answer 5

Cost of Goods (COG)

Question 6

The economic concept that states that the more of something a company buys or produces, the cheaper each unit becomes.

Answer 6

Economies of Scale

Question 7

Also known as a call for bids or invitation to tender (ITT), the process by which a company formally asks manufacturers to submit bids for a project.

Answer 7

Invitation to bid

Question 8

An invitation to bid that is open to all manufacturers. This means that any manufacturer who can meet the requirements of the invitation to bid is invited to submit a bid

Answer 8

Open Tenders

Question 9

An alternative bidding process where the lowest bidder may not get the contract because the company issuing the RFP is also seeking advice on how to move forward with the project. Therefore, specific subject-matter expertise is also taken into consideration when evaluating submitted bids.

Answer 9

Request for proposal

Question 10

A bidding arrangement in which companies maintain a list of preapproved manufacturers (or vendors) and solicit bids from that group when needed

Answer 10

Restricted tender