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GEM ADVISORY

The GeM IT Products Pricing Trap

Why underpricing IT hardware bids can hurt your business more than losing the tender.

4 min read GeM

IT hardware category competition on GeM is intense, and the temptation to underbid for volume can lead sellers into unsustainable pricing.

The Trap in Detail

Winning a large IT hardware order at a price that doesn't account for warranty support costs, logistics and potential component price fluctuations can turn a "win" into a loss once fulfillment costs are accounted for.

Pricing Sustainably

Building bids from a true landed-cost model — including support obligations over the warranty period — protects your margin even in a highly competitive bidding environment.

Frequently Asked Questions

How do I account for warranty costs in my bid?

Estimate expected support/replacement costs over the warranty period and factor this into your per-unit pricing, not just the upfront hardware cost.

Is it better to lose a bid than underprice?

Generally yes — an unsustainable win can cost more in fulfillment losses than a lost bid opportunity.

Ready to Move on This?

Talk to LeegAl's advisory team about GeM registration and bidding — clear process, transparent pricing, no obligation.

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