Pricing Strategies for Government Contracting
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- Опубликовано: 29 сен 2024
- As government contractors, we must understand contract pricing. In this video, I explain the five (5) cost or accounting pools that must be understood and accounted for as a government contractor. In this video, I explain the five common accounting or cost pools that must be addressed within your pricing calculations.
Curtis was named a Game-changer by the White House Policy Advisor for Entrepreneurship and Innovation in 2020. He has secured more than $1B+ in contract ceiling. Curtis will provide practical techniques, tips, and tricks that you aid your entrepreneurial journey on this channel.
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#pricingstrategy #pricingstrategies #pricing #accounting #costaccounting #governmentcontracting
One of the few RUclipsrs that gives you content related to the title. Thank you for not bullshitting us & disguising your vids as thinly veiled attempts to sell online courses. Appreciate you brother!
Thank you! Glad to know you are finding value on this channel. I simply work to provide value to the government contracting community.
Congrats on the PhD brotha, I’ve been following you for a while. Keep it up!
Thank you so much!
Great information thank you so much
You are most welcome!
Thank you!! very VERY helpful
You are most welcome! I am glad to hear you found the content helpful!
Great information Question if I get a contract for giving them the products they need and I find everything on Amazon and Amazon delivers it to the location, is this legal and what should my mark up be?
Hi Curtis, great stuff!
Is the $223k before or after taxes? If after, in which pool did you include the taxes?
Glad you found the content helpful. In my fictitious example, that was net profit (after tax profit). Taxes are contained in my direct labor pool based on the structure of our chart of accounts.
Glad you found the content helpful. In my fictitious example, that was net profit (after tax profit). Taxes are contained in my direct labor pool based on the structure of our chart of accounts.
Hey Curtis I know I’m just now being introduced to you and caught this video. I have a quick question on that wrap rate example. How would you come up with that 1.5 in real time? In order to put this formula together
I strongly recommend you work with a government contracting accountant to determine your wrap rate. You must understand allowable and unallowable costs from a government contracting perspective. Unallowable costs should not be confused with legality. Many costs are legal, but unallowable for government contracting pricing calculations. I hope you will take my advice and get a government contracting accountant. Please ask your mentor for a government contracting accountant recommendation if you have one.
Can you do a video on how to fill out a RFP or RFQ?
Sure! Are you asking how to fill out Standard Form SF-30 or how to interpret RFP vs. RFQ?
Check out this video and see if it helps any: ruclips.net/video/n-6sDLHqJtY/видео.html
@@DrCurtisJr yes!
@@DrCurtisJr I will check it out today! Thanks again!
This is the absolute BEST video and content about pricing!
Hey Brother! I have a mentor that's teaching me this same information! Great! I wonder if you two know each other?
Hey Sir! I am uncertain who that may be, but I know all of the big names in the space. Many of us have taught on the same stages together in the past. I have been in government contracting since I was 17, but just started teaching again recently.
That was very good. I am a former Cost Accounting Manager for a Government Contractor that provided Engineering, IT Services, and Medical Training Support Services. You are the first person I have heard on here to address the importance of knowing your numbers and segregating those expense pools. This is so important and bravo for explaining it so eloquently.
I am glad to know that you found value in this content. My goal is always to educate and address the topics that need more attention to better ensure entrepreneurial success. It's not a sexy topic, but it is much needed. BTW, thank you for your service to the government contracting community as well.
Thank you! I will check out your channel. I appreciate you. ❤🔥❤🔥❤🔥
You are most welcome! I hope you find channel content helpful.
Your content is above level. I pray you continue to create this value adding content. I enjoy your high level of business acumen vs what other content providers offer. I'm thankful to have found your content before I get my cage code so I can redirect my priorities and get to "know my numbers". I have one question: What would be the purpose of winning a contract and intentionally breaking even? would it be just to create a relationship?
Thank you for the kind words. A company would take a loss or break even for a strategic purpose. Usually, to obtain better market positioning for a large pursuit downstream. This is not an approach that I advise new companies to pursue because adequate reserves are needed for contingency planning and unforeseen circumstances. A company may choose to break even or take a loss today to gain a competitive advantage tomorrow. For instance, breakeven on $10M to make $100M, but that decision should be based on robust market intelligence & market research. It's a calculated risk, but it may pay huge dividends later if done correctly.
@@DrCurtisJr sounds like a strategy. I may need to employ one day in the future. This is one level of insight you can’t find anywhere else. I’ll put this in my back pocket. I’ll be moving forward with your advice as a new business looking into the purchasing side. As well as any other suggestions I see in your future videos. Thank you for your guidance!
These other contractors are not speaking the way that you’re speaking. There really is a lot to learn. My biggest hurdle would be funding a project until I am paid.
Government Contracting is not hard, but there are several moving pieces that you must remain mindful of. The biggest hurdle is learning the language of government contracting. Here is a video that may increase your understanding of project funding: ruclips.net/video/OgVWZAdABL0/видео.html
Outstanding instructions and presentation, I learned from you.
Thank you so much & I am glad you found the content helpful.
Does your course offer pricing templates?
We provide a pricing framework guidance because everyone’s pricing is different based on direct & indirect corporate cost profiles.
We provide a pricing framework guidance because everyone’s pricing is different based on direct & indirect corporate cost profiles.
Thank you for that deep dive! Definitely not getting this info elsewhere! Probably in their paid courses 🤷♂️ excellent content, very much appreciated!
Glad to provide the content. I teach content that is not in our classes. We had to limit the course content to 16+ hours, so entrepreneurs could get through the content. Stay tuned more content is coming.
I have been looking for tutelage
I would welcome the opportunity to be your coach whenever you are ready to join the 8-Figure GovCon Community.
I'm ready
@@kendrickpalmer7254 Here is the link to sign-up for the 8-Figure GovCon 5X Bundle Program: www.8figuregovcon.com/store Let’s Go!
Why 10% profit?
That’s what simply an example. If you know what you are doing, you can squeeze out addition profit from the cost pools.
Hi Curtis, great stuff!
Is the $223k before or after taxes? If after, in which pool did you include the taxes?
That 223 is before taxes
What about pricing for product contracts?
Pricing for product contracts should be based on the OEM or wholesale price. You will receive deeper discounts based on your level of engagement. For example, Channel partners will receive the deepest discount. Once you obtain the pricing for the ODC, you will add your G&A cost. Based on your cost model, you will add G&A at the minimum to cover the time spent registering the opportunity with the OEM, order processing, etc. If services are bundled into the product buy, you will use the pricing structure outlined in the video to create a wrap rate based on direct labor, OH, G&A, fringe, and profit to create service pricing. Hope that helps.
I have been a 1099 consultant for years...I have recently been asked to join a team and I am now catching up trying to do cost and pricing. Very informative and looking for a course in the local area (DMV)!
I do not teach pricing exclusively, but my course provides pricing resources, etc.
@@DrCurtisJr OK, I am certified in many disciplines including Budget Financial Management from the government side...just sent you a note via LinkedIn. I am trying to learn this budget stuff and as I type, I am navigating a landmine field relative to cost. Don't want to sell myself short and be dropped because I am loosing revenue hand over foot.
Thank you for the prompt reply!
@@Dr.Tony_DMV-ob8ns I sent you a note on LinkedIn, but I recommend retaining a government contracting accountant to help you build your chart of accounts, segregate cost pools, and build your wrap rate. Once you have your wrap rate, costing will be reasonably straightforward. Unless you have a background in cost accounting, hire an expert and be done with it. Focus on your services that will generate revenue and profit and consult with accountant that do this work everyday. In short, maximize your strengths and minimize your weaknesses by retaining the right consultants to assist with back-office activities.
Well done!!! ... Easy to follow content .... hope you continue to provide this level of info ... THANK YOU VERY MUCH !!!!
Thank you! Yes, I will continue to provide value-added education. Glad you are enjoying the content on this channel.
DOCTOR....BROTHER.....MAN OF GOD. YOU ARE AN INVALUABLE RESOURCE TO NOT ONLY THE BLACK COMMUNITY, BUT THE ENTIRE CONTRACTING SPACE (LINGO CHECK). THE KNOWLEDGE AND PROFESSIONALISM IS HEAVEN SENT. I HAVE SOME PREVIOUS CONTRACTING EXPERIENCE ON THE PRODUCT SIDE VIA DIBBS. I GOT OUT OF THE INDUSTRY DURING THE HOUSING CRASH, AS THE CONTRACTS REALLY SLOWED DOWN. I HAVE RE-ENTERED THE CONTRACTING COMMUNITY AS OF JANUARY....HMMM....I WILL NOT REST UNTIL I AM ABLE TO NETWORK WITH YOU AND YOUR WIFE. I AM ALSO A LICENSED BARBER/ BARBER TEACHER WITH 24 YEARS IN THE INDUSTRY. A DIVORCE IN JANUARY HAS TEMPORARILY LEFT ME IN A DIMINISHED CAPACITY. IF YOU EVER CONSIDER DOING ANY PRO-BONO/ SCHOLARSHIPS, PLEASE CONSIDER ME. YOU HAVE NOT BECAUSE YOU ASK NOT...IN ANY EVENT....#BRAVO. 👏🏾👏🏾👏🏾
Thank you for the kind words. You are resilient, and I want to encourage you to keep pushing forward no matter what. Your prior experience will serve you well, and you work to re-enter the space to find greater success than before. Yes, we will keep you in mind for future program scholarship opportunities.
Do you put the breakdown of the wrap rate and your profit margin in the proposal? Or just the all in rate (including profit)?
Yes, if the government asks for it. Oftentimes, you will be asked to fill out a pricing template during the proposal process. Never share your rate calculations with anyone except the contracting officer if requested. Does that make sense?
Thank you! New subscribers
Thank you and glad you enjoyed the content.
I don't know if you are going to see this but I am desperate for a change. All my life I've been a dreamer, I haven't had the most easy life but God has watched over me , I am at a point where I need guidance because I don't want to make any critical mistakes above all else I want to glorify God in all that I do to be a testimony that no matter the obstacles with God you can make it I have my own business and am in the process of trying to get into government contracting all I'm asking is for someone to mentor me and help guide my steps not as a spirit guide but as a help on this earth, God put certain people in certain places on earth for a reason and I don't believe in coincidence I thank you so much for being a looking glass in what it can be like on the other side of poverty
I am glad that you are enjoying the content on this channel. I would welcome the opportunity to serve as your government contracting coach & mentor when you are ready. Therefore, considering enrolling in my 8-Figure Government Contracting Mastery 5X Program. Here is the link: www.8figuregovcon.com/
@Curtis A. Merriweather, Jr., Ph.D. are you still offering the payment plan as I am also enrolled in a real estate course right now I'm trying to do everything I can to invest into my future but I'm the only income in my household wife and baby
@@samsonstrengthtraining3278 Unfortunately, we are not offering payment plans at the current time.
Took all your notes 💎
Great stuff as usual @cmerriweatherjr
This is a great breakdown of how to calculate a wrap rate. I just want to reiterate that all #govcon CPAs are not created equal!
I've inherited many a cost model from a CPA where they had a floating wrap rate depending on the salary. i.e. $125K salary has a lower wrap rate than a $50K salary. This is a no-go when folks like DCAA come knocking looking for consistent estimating.
I'd advise that seeking a CPA is a great way to get a handle on your costs, but seek out a pricing expert for better guidance.
Pricing is all about value; costs really should be irrelevant to the decision. Obviously, they matter for a firms profitability, but not from the customer's perspective.
Thanks
You are most welcome!
Hi Curtis🎉 Great job ❤
Hello! Thank you!
I'm a new subscriber and new to the government arena. This video was right on time; thanks!
I am glad you found the video helpful and welcome to the channel.
Thank you! I'm convinced that I need to buy your course. I need access to you to ask some detailed questions.
You are most welcome. I welcome the opportunity to serve as your coach and mentor whenever you are ready.
📝✅🙏🏿
Can you recommend a good CPA that understands government contracts?
Yes. Lisa Anderson would be a great starting place. Here is his LinkedIn Profile: www.linkedin.com/in/hirelisaanderson/
Tell her that I recommended you and he will take great care of you.
And are you dealing with veteran government contracts that 3% pool
No, we deal with 8a, Small business, and Full & open contracts. However, the principles I teach apply to all contract classes. SDVOSB is a set aside type. Nothing more nothing less.
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This is great information. Thanks for sharing!
I am glad you found this content helpful.
This course is worth buying.
Thank you. I will work to continue providing value-added content.
Another awesome video
Thank you! Glad you enjoyed the content.
Thank you for your time !
Glad this video was helpful!
I have a question are you a veteran
I am not a veteran. I worked as a civilian for the Navy.
@@DrCurtisJr 10-4 thx