With regard to bid pricing, a marketing manager should be aware that:
A) the customer is always required to accept the lowest bid.
B) since it costs very little to submit a bid, most firms try to bid for as many jobs as possible.
C) the same overhead charges and profit rates usually apply to all bids.
D) a big problem is estimating all the costs--including the variable and fixed costs that apply to a particular job.
E) All of these alternatives are correct.
Ans: D) a big problem is estimating all the costs--including the variable and fixed costs that apply to a particular job.
When submitting a bid price for a standardized product, the marketing manager may have to decide the firm's lowest acceptable price and how close to that price should be the bid. A big problem in bid pricing on a particular job is estimating all the costs involved, i.e. fixed and variable.
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