Price

Price

1. Relation of Cost to Price

   • Meaning of Cost
     • Direct
     • Indirect
     • Variable
     • Semivariable
     • Fixed

2. How Suppliers Establish Price

   • Cost Approach
   • Market Approach

3. Government Influence on Pricing

   • Legislation Affecting Price Determination

4. Types of Purchases

   • Raw Materials / Sensitive Commodities
   • Special Items
   • Standard Production Items
   • Small-Value Items
   • Capital Goods
   • Services
   • Resale

5. Quotations and Competitive Bidding

   • Steps in the Bidding Process
     • Be qualified
     • Be sufficiently reliable
     • Be numerous enough
     • Not be more numerous than necessary
   • Firm Bidding
   • Determination of Most Advantageous Bid
   • Collusive Bidding
   • Public-Sector Bidding
   • The Problem of Identical Prices

6. Discounts

   • Cash
   • Trade
   • Multiple
   • Quantity
   • The Price-Discount Problem
   • Quantity Discounts and Source Selection
   • Cumulative or Volume

7. Contract Options for Pricing

   • Firm-Fixed-Price
   • Cost-Plus-Fixed-Fee
   • Cost-No-Fee
   • Cost-Plus-Incentive-Fee
   • Provision for Price Changes
   • Contract Cancellation

8. Forward Buying and Commodities

   • Forward Buying versus Speculation
   • Organizing for Forward Buying
   • Control of Forward Buying
   • The Commodity Exchanges
   • Limitations of the Exchanges
   • Hedging
   • Sources of Information Regarding

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