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Found 2 results

  1. I'm a pricing analyst for a large business, although a relatively small one. In a recent green team my COO stated that he wanted to start seeing contribution margin in our meetings. His statement was that even though we are coming it at a minimal net profit margin, adding x amount of people will increase our base and lower the wrap. I'm fully following at this point. He then stated he wanted to see contribution margin because that's what really matters in this situation. That's where he lost me. I've asked multiple people within my company, and google, and cant seem to figure out how contribution margin is any different than gross margin on a service-based contract. Ultimately I may have to just ask him what he's looking for, which is fine, but would like to try to figure this out on my own if possible. Any insight on how to calculate this will help me, thank you!
  2. During the course of source selection is it allowed to not evaluate a price for a item that has been determined above the requirements. It was discovered during the course of the technical evaluation that this particular item was not needed. The solicitation has an "evaluated" price and since this was not part of the SOW/requirements can I leave it out of the evaluation.
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