Negotiation is basically a skill, which may be honed over time until it is perfect. However, developing this skill needs a lot of persistence and practice. The General Service Administration in the United States allows for negotiation. It conducts a price negotiation with the company that wants to apply for the federal contract. The price negotiation is generally conducted after the submission of the GSA application. The main objective of the negotiation is to get the best price for the federal government.
By obtaining a GSA contract, the vendor comes to an agreement to offer the best price to the government for any quantity. But, it’s also true that the General Services Administration will look for more concession. So, before starting the negotiation, it’s important that you do a thorough research.
By obtaining a GSA contract, the vendor comes to an agreement to offer the best price to the government for any quantity. But, it’s also true that the General Services Administration will look for more concession. So, before starting the negotiation, it’s important that you do a thorough research.
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| GSA Schedule Contract |
You are in fact highly recommended to seek products that are same as yours and are listed on the General Services Administration. However, there are some complications with regard to this.
• A GSA applicant may always try not to give the extra cost of the products that arise due to quality difference between their products and the one that is listed on the Schedule. Quality differences between the products are determined on the basis of weight, strength, warranty, product lifetime and durability.
• If the company is located in an area where the number of competitors you have is few, modifying the pricing strategy becomes a difficult affair. This is mainly because of the presence of the few regional competitors. Such a situation generally demands higher price to General Services Administration for your firm and less concessions.
• The General Services Administration ensures the Schedule holder to provide the most favored customer pricing. At whatever price you are selling your products to the commercial clients, it’s important to remember that it’s the price that General Services Administration presumes.
• As a GSA applicant, you should monitor the quantity discounts or payment that are proposed by your competitor to the General Services Administration. Proper monitoring will give you an insight on the successful discounts that were made by your competitors previously. By doing this, you can be enlightened about the negotiated agreements, which GSA acknowledged previously.
At Advance GSA, we say to our clients that every kind of price concession will have something in store for the Schedule holder. Therefore, we suggest our clients to try their luck for GSA bulk order discounts rather than the blanket price concessions. Getting faster payment terms need to be requested as an important part of price concession.
• A GSA applicant may always try not to give the extra cost of the products that arise due to quality difference between their products and the one that is listed on the Schedule. Quality differences between the products are determined on the basis of weight, strength, warranty, product lifetime and durability.
• If the company is located in an area where the number of competitors you have is few, modifying the pricing strategy becomes a difficult affair. This is mainly because of the presence of the few regional competitors. Such a situation generally demands higher price to General Services Administration for your firm and less concessions.
• The General Services Administration ensures the Schedule holder to provide the most favored customer pricing. At whatever price you are selling your products to the commercial clients, it’s important to remember that it’s the price that General Services Administration presumes.
• As a GSA applicant, you should monitor the quantity discounts or payment that are proposed by your competitor to the General Services Administration. Proper monitoring will give you an insight on the successful discounts that were made by your competitors previously. By doing this, you can be enlightened about the negotiated agreements, which GSA acknowledged previously.
At Advance GSA, we say to our clients that every kind of price concession will have something in store for the Schedule holder. Therefore, we suggest our clients to try their luck for GSA bulk order discounts rather than the blanket price concessions. Getting faster payment terms need to be requested as an important part of price concession.
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