Pricing Strategies for Business Procurement in Public Universities

This study sought to identify competitive strategies used by privately owned business while competing for public tendering opportunities in Public Universities in Kenya. The study identified pricing as a strategy for creating a competitive increase while competing for tendering opportunities in Chartered Public Universities in Kenya. To achieve its objectives the study adopted a descriptive design with quantitative approach where semi-structured questionnaires were administered. The target population was 149 suppliers of goods and services to Kenyan Public Universities in the Rift Valley, Central, Nairobi and the Eastern Regions. The data collected was analysed using Statistical Package for Social Sciences to generate descriptive and inferential data. A regression model was developed to establish the strength and direction of the relationship between the variables and the following B coefficient value of negative 0.119. The study found out that pricing has an influence on the competitiveness of the business for public tendering opportunities and any increase in price negatively affects the competitiveness of the business. The study recommends that firms seeking to compete for tendering opportunities in the public sector should cite prices that are passive and within the market rates without compromising the excellence of the products being provided.