If you find that you are not getting work because your bids are too high, you should try?

If you find that you are not getting work because your bids are too high, you should try?

• A. Lower fixed expenses
• B. Increase the bid
• C. Lower quality of work
• D. Solicit fewer bids

Answer: (A)

Bidding more competitively often comes down to how overhead affects your price. Fixed expenses are the costs you pay regardless of how many jobs you take on—things like rent, insurance, office staff, and equipment depreciation. If your bids are too high, lowering these fixed expenses reduces your overall cost base, so you can submit a lower bid while still keeping a healthy profit margin. For example, easing overhead from a high annual amount to a smaller figure lowers the per-project cost you must cover, letting you compete on price without sacrificing quality. Increasing the bid only makes you less competitive; lowering the quality of work would damage your reputation and is not acceptable; and soliciting fewer bids reduces market competition and your opportunity to win work.

Bidding more competitively often comes down to how overhead affects your price. Fixed expenses are the costs you pay regardless of how many jobs you take on—things like rent, insurance, office staff, and equipment depreciation. If your bids are too high, lowering these fixed expenses reduces your overall cost base, so you can submit a lower bid while still keeping a healthy profit margin. For example, easing overhead from a high annual amount to a smaller figure lowers the per-project cost you must cover, letting you compete on price without sacrificing quality. Increasing the bid only makes you less competitive; lowering the quality of work would damage your reputation and is not acceptable; and soliciting fewer bids reduces market competition and your opportunity to win work.