The GeM IT Products Pricing Trap
Why underpricing IT hardware bids can hurt your business more than losing the tender.
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.
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Talk to LeegAl's advisory team about GeM registration and bidding — clear process, transparent pricing, no obligation.
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