Competitive Bids

There is a very big value on competitive bids. In my opinion, there are a few reasons why an organizational buyer would want to get competitive bids. The reason would be to get the best possible price for the services they would need or the goods. The only problem would be when no competitive bids are obtained. What will the company or organization do then? The competitive bids need to be taken so that the company or organization can get the best price from each vendor and then compare. From there, they can choose who has the overall best price and service. Bidding is a very common practice in selling retail. It is necessary for companies to obtain competitive proposals from at least three reputable vendors. With this, there are options available. They will do this to get the best price possible for the transaction. The competitive bidding process involves the buyer providing the requirements met in the purchase to a variety of different suppliers. From then, each buyer develops a bid based upon the estimated cost that the supplier would face. From there, the bids are submitted to the purchaser’s agent who determines if it meets the requirements. Competitive bids allow the organization to save money by purchasing for the lowest offered cost that meets the criteria set out for the purchase. Competitive bids are offers extended in which they detail proposed compensation that they will receive in exchange for executing a specific task or tasks. Competitive bidding also differs from other pricing strategies because a specific price is put forth for each possible job rather than a generic price that applies to all customers. According to the article on Competitive Bids, there is a very big problem with bid pricing. Estimating all the costs that will apply to each job is an issue.