Each selected vendor knows three things:
1. Others against which it is competing are likewise qualified.
2. Quality and on-time delivery requirements are clearly specified and must be met.
3. Low bid wins since quality and service are a given.
In order to compete, each vendor must identify its own otherwise idle production capacity. To fill that open capacity, each vendor must offer deep discounts of 25 percent to 50 percent or more from normal pricing. Low pricing varies from vendor to vendor, depending on which vendors have downtime available for any given project to be produced at any given time. Because each vendor has been pre-qualified and each project has been appropriately specified, the buyer does not have to worry about compromising quality or on-time delivery, even though the job is being produced at a deeply discounted price.