One of the toughest questions we are asked in an RFP or early in a buying cycle is the pricing question. Why can this be so challenging? Sometimes:


the request is so vague we don't know what to give them
the request is so early that we don't yet have a specific solution in mind
the request is so broad that it's difficult to figure out what to give them
our pricing is in flux based on supply, demand, market considerations and timing
we aren't sure what the negotiation process will be
we don't know how important the pricing criteria is at this stage of the process
we don't know whether our response, or lack thereof, might eliminate us from consideration
we aren't sure if our pricing is a strength or weakness, positioning us as a front runner or an also-ran


We can often end up feeling like we have to give them our best shot at the RFP response stage just to become a finalist, fully realizing that if we get to this stage we'll be asked to go lower, all before entering the true negotiation phase!

There is certainly no easy solution to this problem, but we do have options. We can:


give them exactly what they ask for
give them a representative sampling of our pricing and share with them when we will be positioned to provide complete pricing information
share with them our pricing philosophy and typical market positioning
defer providing specific pricing until the solution is more clear


The intent is not to avoid this topic, but to make sure that when we address it we address it effectively, play to our strengths, and avoid an endless discounting loop.