Jul
How Do You Deal With RFP/Tenders?
A few weeks ago I posted a piece called Tender This, questioning the value and need for tenders and RFP’s, vs. making a decision based on a different path. Some shared my opinions others had different views, it is funny how the ones that really disagree write me directly rather than posting comments for others to see and respond to.
One of the take aways I got out of it is how can you counter act the trend. So if buyers are relying more on RFP’s for whatever reason, governance, stated practice, lack of strength to make a decision without covering your ass, what have you. What can sellers to do to level the playing field? One fellow I spoke to had a practice that he feels doesn’t necessarily derail the process, but gives him a leg up, and he does claim that he had success more than once in having an RFP pulled in favour of exploring his solution exclusively.
So my question to you is two fold, first how do you gain an advantage in an RFP situation? Second, do you have a means of changing the game, and getting them to park the RFP/Tender, and look at your offering exclusively?
Share your methodologies/techniques/tricks, we’ll share all, and then tell you what my friend in South Carolina shared with me.
What’s in Your Pipeline?
Tibor Shanto
This post has 6 comments
July 2nd, 2009
Here is what I recommend to my customers. I obviously also eat my own dog food but I rarely get into RFP situations.
1. Have relationships in place well before an RFP is issued. Yes it is an upfront investment but given the success rate of just responding to an RFP (10%) it is worth it.
2. If an RFP comes in by surprise, try at least then to meet people at the issuing company. If this is denied, do not answer, you are just column fodder. Exception: If you can get at least the purchaser to accept that you do him/her a favor for being column fodder, bid with minimal effort for the favor of being put in a better position the next time around (start building the relationship).
3. There are situations where you cannot not bid although you consider the chances to win as very slim. In this cases do so with minimal effort.
July 2nd, 2009
From the customer’s point of view, I don’t see an issue with using RFP or Tender as a tool to get the most value from suppliers and vendors. And in most cases the fact that a company uses them doesn’t alleviate the suppliers and vendor’s sales teams from doing their job.
In every case that I’ve been involved in:
1. Sales reps had to provide a good enough rational and have a strong enough relationship with me in order to be included in the list.
2. Sales reps needed to respond to MY issues and communicate in writing their proposal including proposed rates, performance metrics and services. These are the things that differenciate a tight marketplace
3. Before any significant piece of business was awarded, Top respondents have always been invited to further detail how they would add value. This provides both the opportunity to clarify as well as address points brought up by other vendors.
4. Relationships do matter and with any RFP / Tender having a history and a track record counts a lot (good or bad) toward completing the sale.
5. An RFP / Tender can lead to a more optimal solution, sometimes with more than 1 “winning” vendor.
6. As a courtesy I have always taken the time to explain to the companies who were not selected the why’s.. (price, service, quality, corporate alignment etc.)
This is just one man’s opinion but I have always found that taking the time to do it right, has added value.
July 3rd, 2009
In the UK, I tell my clients that there are two usual winners in tenders: an incumbent supplier (assuming that they have not made a monumental mess of things) and the organistion which has influenced writing the RFP/ITT. If you are neither of those then your chance of winning is greatly reduced.
Does this mean that you should not bid?
No.
In my experience, where there is a level playing field (and this actually does often happen), then the consisten winners are those who:
1. Take bidding seriously, and expect their sales people to be involved. Tendering is part of the salesman’s job, and not just delegated to a back office team.
2. Write clear, concise answers to questions and answer the questions set rather than just recycling boilerplate text.
3. Understand how to write persuasive management summaries
4. Brief and debrief after client interactions, and use the intelligence gathered.
5. Prepare diligently for each meeting and presentation.
6. Ensure full compliance with the requirements of the ITT/RFP – no cutting corners which leads to low evaluation.
7. Understand the client’s mindset – ie they use their sales skills in written documents. Writing is behaviour on paper!
8. Learn from wins and losses – and feed all experiences into the next bid.
July 3rd, 2009
If you are waiting for RFP, you are late in the sales cycle. From my experience, your chances of getting an RFP is about 1 in every 10 if you are lucky.
When your customers issued RFP, they already know what they want and they have only one purpose, to beat you down in price.
Call high and engage earlier, discover opportunities and be the one who write teh RFP for your customers.
There is no way to gain advantage in RFP unless you are prepare to be the lowest bidder and reduce your profit. For them to look at your offer exclusively, forget about RFP, enter sales cycle early as I said and know how to engage the decison makers with compelling offer than demonstrate clearly how your solution will impact the way they do busienss. Present business before product and show them positive ROI.
July 3rd, 2009
From a client’s perspective…
If it’s possible – BEFORE the RFP is distributed to all the parties bidding on the assignment try to work with the client on the construction of the RFP. Frequently, clients THINK they know the questions to ask, but they don’t always know. A company that offers the client sincere advice on the questions in the RFP may actually help themselves in the RFP process by showing the client the depth of their understanding and knowledge of the factors critical to the success of the project. Granted, this isn’t always possible, but where it is, take advantage of the opportunity. The critical factors in this approach: sincerity and securing the client’s trust that you’re really out to help and not out to just load the RFP with questions that’ll slant the results towards to your company.
July 4th, 2009
RFP is quite common in enterprise business systems (software) sales. Sadly it is often a process requirement for tier 1 businesses to release capital funding. In these cases, you just have to suck it up and decide whether to respond based on your assessment of the opportunity. Still there remain times when an RFP is done just to buy time or “kick tires” to see what’s out there. It takes discernment to understand what your prospects are when an RFP is issued. Just because you are “invited” to respond doesn’t mean you have to. The account strategy team must determine whether you should.
Most of us in enterprise sales seek to be recognized as trusted advisors. We all understand that this means developing relationships and earning trust. Consider that the value of those relationships goes both ways. Sales teams have contact with a wide variety of businesses. We discover how different businesses operate. We get to see what works and what doesn’t work well. We become experts with a lot of value to offer our clients even before selling them anything. Smart prospects recognize that and are anxious to leverage a good relationship with their vendor(s) as much as we are with our prospects and clients.
Truth is that these relationships depend on the vendor almost entirely. We need to initiate them and do all the work to maintain them. Our prospects just don’t have the time. That is not what they are in business to do. When these relationships work well, an RFP can be avoided, cancelled or disregarded. When relationships are neglected or are not effective, the process can get grueling.
Trackbacks/Pingbacks
July 2nd, 2009
RFP Olympics, what do you do to win? #sales #STA http://bit.ly/1oYevy
This comment was originally posted on TwitterJuly 3rd, 2009
Tibor Shanto is asking for ideas/points of view/best practices on how you deal with RFPs/Tenders http://bit.ly/n94Rl
This comment was originally posted on TwitterJuly 3rd, 2009
How do you deal and win with RFP’s and Tenders? see @renbor #sales #STA #RFP http://bit.ly/1oYevy
This comment was originally posted on TwitterJuly 3rd, 2009
How Do You Deal With RFP/Tenders? http://tinyurl.com/nesvug
This comment was originally posted on TwitterJuly 4th, 2009
How do you deal and win with RFP’s and Tenders? see @renbor #sales #STA #RFP http://bit.ly/1oYevy
This comment was originally posted on TwitterJuly 6th, 2009
How do you deal and win with RFP’s and Tenders? see @renbor #sales #STA #RFP http://bit.ly/1oYevy
This comment was originally posted on TwitterJuly 6th, 2009
How do you deal and win with RFP’s and Tenders? see @renbor #sales #STA #RFP http://bit.ly/1oYevy
This comment was originally posted on TwitterJuly 7th, 2009
How do you deal and win with RFP’s and Tenders? see @renbor #sales #STA #RFP http://bit.ly/1oYevy
This comment was originally posted on TwitterJuly 8th, 2009
How do you deal and win with RFP's and Tenders? see @renbor #sales #STA #RFP http://bit.ly/1oYevy
This comment was originally posted on TwitterJuly 10th, 2009
How do you deal and win with RFP’s and Tenders? see @renbor #sales #STA #RFP http://bit.ly/1oYevy
This comment was originally posted on TwitterTrackbacks