Regarding winning bids at low prices
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Regarding winning bids at low prices. Is it reasonable at the same quality?
For the same price, compare quality; for the same quality, compare price. When quality and price are equal, compare service. . . . Good quality, low price – everyone likes it. . Winning a bid is sometimes simply necessary. . .
If nothing else is involved, it should be reasonable.
Many years ago, the method for evaluating bids was to award the contract to the bidder whose bid was closest to the reserve price. However, the establishment of the base price is not necessarily reasonable. These days, it is more often the lowest bidder who wins the contract, but this tends to lead to vicious competition aimed at deliberately lowering prices, posing significant risks to the implementation of the contract. The lowest bidder wins, provided that the winner has good capabilities and reputation, and there are no flaws in their technical proposal.
Regarding winning bids at low prices, it is essential to pay close attention to the technical requirements
Winning a bid at a low price does not necessarily mean that the product is of good quality at a fair price. The intention of the tendering party may be good, but in practice, this approach often leads to significant problems. Therefore, it is now necessary in many corporate tenders to rule out bids with the lowest and highest prices first, as this helps to prevent malicious interference.
The key is how to ensure the same quality, which poses a great challenge to the skills of technicians； I suggest that you first calculate the cost of this project on your own, so as to have a benchmark. If the bid price is much lower than this benchmark, it’s obvious that there’s something fishy going on; don’t assume that they are acting out of charity – a low price inevitably means low quality.
First: What’s bought is not as good as what’s sold； Second: be careful of cheap hedges.
This post was last edited by *nht1 on 2015-9-23 at 22:33. There are new rules for determining the winner now: one highest score and one lowest score are removed, and then the remaining highest and lowest scores are averaged. The winner is the one whose score is closest to this average value, or closest to the target price. If the average value is higher than the target price, then the winner is the one with a score lower than the average but still closest to the target price; if the average value is lower than the target price, then the winner is the one with a score higher than the average but still closest to the target price. Let’s see if there are any mistakes
The quality is the same in all cases; of course, the lower price wins the bid, as the quality of service cannot be seen at the time of bidding
There are several scenarios in which a bid wins: 1. When no one has any connection to the other bidders and they are all on the same level, then the bid with the lowest price wins. 2. When there is some kind of relationship between the bidders, and the price is still low, then that bid will definitely win. 3. When there are significant relationships between the bidders, even a high price can still result in a win. 4. When the technical quality is poor but the price is low, the chances of winning are high. Scenario 4 is quite common these days; during the bidding process, at least three bids must be submitted, so even if the technical quality is the worst, the bid with the lowest price will certainly win.