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The project is then invoiced to the customer based on the actual costs incurred plus the agreed margin. It is essentially the same as what is known (especially in the U.S.) as a cost-plus contract. This contract form is popular to ensure that a competitive price is obtained, for instance in cases where tender competitions are impractical.
Perhaps the most nefarious use of the "price on application" term is as a mild low-ball technique. Even though no initial low price is given, the potential buyer might expect a reasonable price and proceed to enquire. The seller assumes a potential buyer is less likely to go elsewhere once the initial enquiry has been made. [1]
A request for quotation (RfQ) is a business process in which a company or public entity requests a quote from a supplier for the purchase of specific products or services. RfQ generally means the same thing as Call for bids (CfB) and Invitation for bid (IfB). [1] An RfQ typically involves more than the price per item.
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agreeing a reduction in price, obtaining the same item for less cost sourcing, or developing a supply of, a lower quality item at a reduced cost, where the item is still fit for purpose obtaining added value for the same cost, e.g. negotiating extended warranties , additional spare parts etc. [ 52 ]
Although a typical purchase order may not be worded as a contract (in fact most contain little more than a list of the goods or services the buyer desires to purchase, along with price, payment terms, and shipping instructions), the purchase order is a specially regarded instrument regulated by the Uniform Commercial Code or other similar law which establishes a purchase order as a contract by ...
A U.S. appeals court revived a lawsuit on Friday by healthcare and drug industry groups challenging the first-ever U.S. law requiring pharmaceutical companies to negotiate drug prices with the ...
Outside the zone no amount of negotiation should yield an agreement. Zone of Possible Agreement shown graphically An understanding of the ZOPA is critical for a successful negotiation, [ 2 ] but the negotiants must first know their BATNA ( best alternative to a negotiated agreement ), or "walk away positions". [ 3 ]