Bid Pricing Breakdown

[Bob Woodhead]

We sometimes use the 25/25/50 or 30/30/40 or 50/50 (if there’s lots of expenses up front). Usually depends on the size of the client and frequency with which we work with them.

[Jonathan Alexander]

How, generally do you put that into written form? Do you have a breakdown of all the prices and then somewhere specify the payments, when and how much. Just trying to see how pros do it. This is my first time, so any advice helps. And, also, I know that the first payment is up front, the last is on delivery of final product, what do you usually say is the milestone where they make the middle payment? Thanks!

–Jonathan

[Rich Rubasch]

The Association of Independent Commercial Producers (www.aicp.com) has a resource for its members but you can find it here:

https://www.powerbid.com/

It is what the pros use and it can be modified for your use…the best thing is you won’t have to reinvent the wheel and yo won’t miss those little line items that will get you down the road if you don’t put them in the bid.

Rich Rubasch
Tilt Media

[Jonathan Alexander]

Aaah, very useful program, thanks for the tip.

–Jonathan

[Inkling]

“I’m trying to as formal on my first one here as I can. I’ve broken down the pricing, but don’t know how to include on there, that I want 25% up fron, 25% down the line and the final 50% on delivery. Is that a typical way of breaking the payments down?”

At the bottom of your bid, beneath the price breakdown, you have a numbered list of “notes.” These notes can be further subcategorized or not, but include conditions of the contract, like the date the bid expires, delivery timeframe, or the payment schedule. Your payment note could read like this: “Payment: 50% to secure contract, 50% at time of deliverables.”

Jamey C. Shafer
Inkling Productions
NYC