Proposals for new work should be consistent with your firm's business plan, not simply a method of keeping people busy. Sometimes firms submit bids as a marketing exercise, to announce their presence in a new area. However, most firms submit proposals to win new business. Winning requires market intelligence, resources, skills, insight into the customer's needs and knowledge about other potential bidders. Winning also requires skills and knowledge about proposal writing and the related strategies and techniques.
Pricing is a key consideration.
Few proposals intentionally provide a discounted price to win the award. Most proposals are intended to generate a predefined profit. Answering these questions will help you determine when submitting a bid makes sense for your organization. Michael Asner provides consulting services and workshops that help IT organizations create winning proposals. He also helps public-sector bodies deal with RFP issues.