Module 2 — Pricing, negotiation and contract
Holding a price, moving a cost, and writing down what was agreed.
What you will be able to do
Negotiate from a cost position instead of a percentage, and record price, terms and assumptions so a later change is a variation rather than an argument.
The practical work
Take one price you had to defend. Write the cost basis, the concession you could afford, the concession you could not, and what should have been in the confirmation.
Prerequisite: Read module 1 and pass its quiz first.
Reading for this module
Read these 3 Garment Ed subjects in order, then take the quiz below.
Practical worksheet
Take one price you had to defend. Write the cost basis, the concession you could afford, the concession you could not, and what should have been in the confirmation.
- Identify requirements and assumptions.
- Record evidence and calculations.
- Choose a decision and containment action.
- Assign an owner and verification check.
Module quiz
5 questions on Module 2 — Pricing, negotiation and contract. Answer them all, then check your score before moving on. 4 correct or more is a pass. Your best score is saved on this device, and to your account when you are signed in. This is a self-check, not an accredited assessment.
1. What is the difference between reducing a price and reducing a cost?
2. Why should a confirmed price record the assumptions behind it?
3. A buyer asks for a lower price at the same specification and quantity. What is the honest first step?
4. Which order term most often decides whether the agreed margin survives?
5. Why is a target-price exercise dangerous without the cost sheet?