Worked scenario
Competitive on everything except the item they compared
Buyers do not compare quotations line by line; they compare the lines they know, and pricing that ignores this loses winnable business.
3 min read
A schedule of forty items is quoted. The buyer knows the market price of five of them and forms a view of the whole quotation from those.
Uniform margin is not optimal
Applying the same margin across every line means the visible items carry the same markup as the obscure ones. Competitors who understand this price the known items keenly and recover elsewhere.
You cannot learn this without recording losses
Most suppliers keep won quotations and discard lost ones. The lost ones contain the information — which items, at what price, against whom.
A caution
This is about where margin sits in a schedule, not about obscuring a total. A buyer who feels misled on the unfamiliar lines does not return, and the practice only works where the overall price is genuinely competitive.
What changes
- Quotation history retained so lost bids can be analysed
- Visibility of which items customers actually compare
- Margin managed across the schedule rather than per line
- Win and loss recorded with the reason where known
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