Price Analysis Essay Example | Topics and Well Written Essays - 500 words - 1

Price Analysis - Essay ExampleR) promulgates which is a helpful guideline that assists both the parties to transaction regarding the correct hurt of any article (Subpart15.4-Contract Pricing).There are polar sorts of techniques that are highlighted in FAR, to correctly estimate the impairment of goods and services (Price Analysis Techniques Procurement 2011). Some of them are listed below with truncated description.This price analysis technique involves use of previous quotations in respect of the same item. However, this technique has the drawback in the form of not incorporating the element of inflation that normally increases with the passage of time.This method of determining the price utilizes the promulgated list of prices in respect of goods and services, of similar types. Normally goods relating to general use are included in this category as the appropriate authority lists the prices of those goods for the general public.This technique refers to the determination of pric e through different laws. Normally government authorities fix some prices via law so that local producers can resume benefit as well as the customers in order to avoid the danger of shortage.This technique is essentially not a technique rather a way out to determine the prices when no such(prenominal) technique is available to determine the appropriate price. In this method, prices are sought by the personal ruling of the buyer based upon his past experiences and perception related to that particular product.Among these broad techniques, the most commonly use technique is the comparison of Bid Price Technique. In this technique, suppliers are asked to quote their prices and in the end, when best price is found, the tender is given to that particular supplier (Dahl and Hammond 1977). This technique is also useful as the true price prevailing in the market is sought and the element of monopoly is mitigated through the use of this technique. This technique essentially erodes the im portance of all other techniques as in this