Product pricing in B2B

[biophase]

I have a question about quoting prices.

If you have a business and new customers come to you for quotes on products how do you balance the line of: Lower pricing to win the bid and gain a new customer vs. Regular pricing which is more in line with normal margins and current customers?

Would you're strategy be to give up profit margin to obtain a new customer? At what point would your profit be too low to make it worth it? Would you ever sacrifice profit entirely ($0 profits on a sale) if it meant to secure a long term customer?

Assume that once a customer is secured you will get repeat long term business from the customer. Which brings another question... Once you start off with a low price point, it's difficult to raise prices on that customer. So it's a catch-22, is it better to have that customer at super low margins vs. no customer at all.

Is quoting prices a science or do you guys have a set formula?

 

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[tbsells]

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