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Top-Down Pricing

A pricing approach that starts from the customer's likely budget or market price and works down to the cost and margin needed to win.

The difference between the selling price and the cost of supplying a product or service, usually expressed as a percentage of the selling price. Trade margin represents the gross profit available to cover operating expenses (overheads) and contribute to net profit. See also: Gross Margin, Net Margin.

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Related articles

BD, capture and proposal alignment is something most organizations believe they already have, until a deadline exposes where it breaks. At WPS, a Health Solutions Company, the three functions were moving in parallel but not in sync, and the cost was showing up long before anyone started writing.
Casual drinks with the people who win federal business. Alongside AFCEA LA Space Industry Days.

Related Glossary Terms

The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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