Pricing 101: Understanding the basics of pricing a corporate real estate outsourcing deal

Kate Vitasek and Michele Flynn
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Kate Vitasek: Faculty member, University of Tennessee, USA
Michele Flynn: SIREAS, LLC, USA

Corporate Real Estate Journal, 2018, vol. 8, issue 2, 180-192

Abstract: Perhaps no other topic creates as much apprehension between a buyer and a supplier as trying to negotiate a fair price for corporate real estate (CRE) services. The current authors believe one of the key reasons is because buyers and suppliers do not understand the fundamental basics of pricing. Pricing a CRE deal becomes much easier when you completely understand the tools in your pricing toolkit. This paper addresses five common questions with which organisations often struggle for pricing a CRE deal. In answering the questions, the paper defines and explains the pricing tools practitioners can use to make getting to a fair price easier. The paper also provides recommendations where appropriate. Lastly, the paper challenges buyers and suppliers to negotiate prices with a lens of transparency.

Keywords: pricing; pricing models; best value; compensation; sourcing; sourcing business models; real estate; facilities management; CRE outsourcing; Vested outsourcing; TCO; performance-based; outcome-based (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:aza:crej00:y:2018:v:8:i:2:p:180-192

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