Price Analysis Assume You Will Only Be Essay

Open, View, and/or
Download this Document

Total Length: 641 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

Price Analysis

Assume you will only be allowed to use one (1) method for performing price analysis for the duration of your career when evaluating contracts

When conducting a price analysis, the most obvious method of doing so is comparing competitive bids. "Obviously, this is one of the best means for validating price. By asking three or more suppliers of their prices for the same product, we can determine if a particular price is reasonable" (Price analysis techniques, 2012, Woods Hole Oceanographic Institution). However, it should be noted that the lowest price does not always mean the lowest cost, and the total cost of the contract must be analyzed. "There may be cost associated with making the lower cost product perform to standards, the additional cost of early replacement or the cost of redesign and/or testing required to make the lower cost product applicable. This 'total cost of acquisition' is the real cost that must be compared" (Price analysis techniques, 2012, Woods Hole Oceanographic Institution).

Stuck Writing Your "Price Analysis Assume You Will Only Be" Essay?

View All Our Example Price Analysis Assume You Will Only Be Essay

Have A Custom Example Essay Written

When comparing competitive bids, it is important to use the same method of evaluating all the bids, to ensure that the comparison is conducted in a fair manner accurately reflecting the cost of each bid.

However, one disadvantage to this comparative method is that it is not always possible to obtain a wide variety of similar proposals to compare from credible companies. Another method of price analysis is that of a comparison of prior quotations "for the same product or service to determine the viability of the current quotation" (Price This can also expedite matters if there is not enough time to compare multiple bids and a single bid alone is under consideration. A comparison of a published price list for the items, if available, is also another possibility to use when evaluating a quote. "This method should only be used for materials that are sufficiently similar to….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Price Analysis Assume You Will Only Be" (2012, July 09) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/price-analysis-assume-only-81062

Latest MLA Format (8th edition)

Copy Reference
"Price Analysis Assume You Will Only Be" 09 July 2012. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/price-analysis-assume-only-81062>

Latest Chicago Format (16th edition)

Copy Reference
"Price Analysis Assume You Will Only Be", 09 July 2012, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/price-analysis-assume-only-81062
   

Open, View, and/or
Download this Document
order custom essay example