Strategy6 min readUpdated:

MEAT Mastery: How to Justify a Premium Price

Stop the race to the bottom. Learn how to leverage fictitious discounts to win tenders with better margins.

MEAT Mastery: How to Justify a Premium Price

In Brief (BLUF)

The lowest price is a trap. Top contractors use the MEAT mechanism to monetize their quality and remove risks for the client.

Key Takeaways

  • Fictitious Discount = Profit: Convert quality into a virtual price reduction.
  • Sell Certainty: Clients are happy to pay extra for risk management.
  • Be SMART: Vague promises cost points. Hard guarantees earn money.

Most contractors view a tender as a simple math problem: whoever dives the lowest, wins. That is a fallacy that destroys your margins.

In the modern procurement landscape, the lowest price is often synonymous with the highest risk. Clients know this. They aren't looking for a bargain; they are looking for certainty. And they are willing to pay for it via the MEAT mechanism (Most Economically Advantageous Tender).

If you understand MEAT as a strategic weapon rather than a bureaucratic hurdle, you can justify a higher contract sum and win the tender. Here is how the top of the market plays this game.

The Mechanism: Fictitious Discount as a Profit Engine

MEAT is not about "scoring points." It is about monetizing quality. In a MEAT model, every quality promise is converted into a fictitious discount on your bid price.

Here is the catch: That discount is virtual, but your payout is real.

Calculation Example (The "Price Paradox"):
You bid €1,000,000. Your competitor "The Price Fighter" dives under with €950,000.
The client applies a MEAT value of €50,000 per point on "Risk Management".

You deliver a watertight risk plan (Score: 8). The Price Fighter delivers a standard story (Score: 6).
Your Fictitious Discount: €100,000 (2 points difference x €50k).
Your Comparison Price: €900,000.

Result: You win the tender with the lowest comparison price, but ultimately invoice €50,000 more than your competitor.

Reverse-Engineering the Evaluator

Winning on MEAT starts long before writing. It starts with dissecting the client's fear. Why were those award criteria established?

  • Are they asking for Environmental Management? Then the fear is: angry neighbors and construction stoppages.
  • Are they asking for Planning? Then the fear is: political fallout from delays.

Your proposal shouldn't say "we are good at planning." Your proposal should say: "we eliminate the risk of delay completely through measures X, Y, and Z."

The Winner's Weapon: SMART Specificity

Where the losing bidder writes in vague promises ("We ensure minimal nuisance"), the winner writes in SMART guarantees.

Subjectivity is the enemy of a high score. Make it impossible for evaluators to give you a 6 by providing irrefutable evidence.

  • Don't say: "We communicate well with the neighborhood."
  • Do say: "We guarantee a response time of < 2 hours to all resident complaints via our 24/7 app, and organize a weekly walk-in consultation on Tuesday evenings."

The more concrete your promise, the lower the perceived risk for the evaluator. And lower risk = maximum fictitious discount.

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Key Features

  • MEAT Calculator
  • Risk Scanner
  • Competitor Analysis
  • SMART Generator

Common Use Cases

  • Margin optimization
  • Strategic bidding
  • Risk management

Tags

#meat strategy#fictitious discount#smart goals#winning tenders

Frequently Asked Questions

How exactly does fictitious discount work?

It is a virtual amount deducted from your bid price for evaluation purposes only. You still invoice your full price.

How do I score maximum points on MEAT?

By eliminating the client's fears (risks) with concrete, SMART-formulated measures.

Is MEAT objective?

No, and that is your opportunity. By making subjective criteria objective with hard guarantees, you force the evaluator to give a high score.

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