Leveraging Dynamic Pricing as a Competitive Advantage for Suppliers in Tender Processes
Year: 2024
Type: article
Abstract: This study develops a dynamic pricing model to minimize unearned revenue in public procurement processes. The research focuses on suppliers' participation in public tenders to establish a fair lot price. By combining quantitative and qualitative methods, the study analyzes data from the public procurement portal, companies' financial statements, and insights from in-depth interviews. Using the Altman model, the analysis investigates how additional revenue from dynamic pricing impacts short-term (1–2 years) bankruptcy risks. Results indicate that optimal dynamic pricing-achieving an effect of 14–16% - can enhance a company's financial stability by reducing bankruptcy likelihood. The study also assesses suppliers' responsiveness to recommended prices, finding that suppliers raise their prices by approximately 55–60% in line with recommendations. Suppliers consider this approach ethical, as profit remains a key business objective. The research concludes with a linear model capable of achieving a 65% success rate in tenders and reducing unearned revenue by 83.9%.
Source: Statistika učet i audit
Authors: A. Jumasseitova, R. Savoskin, D. Chowdhury
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4406476714