It’s difficult, but not impossible, to communicate value in a competitive bid. In this episode, we cover several tips that will help you sell more profitably in bidding scenarios.
The acronym RFP might stand for Request For Proposal. It really means Request For Price! Think about it…buyers are trying to squeeze every bit of margin out of the deal by putting you into a competitive scenario.
The acronym RFI might stand for Request For Information, but it really means Request For Imitation. Review the last RFI you provided. I’m guessing it sounds, looks, and feels the same as your competition.
“The bidding process is flawed because it’s based on the buyer’s interpretation of their own needs.” Too often, buyers are unaware of their needs. Or, they don’t fully understand the impact of their decision on other areas of the business.
Before spending too much time on bidding opportunities, ask yourself, “Do we even want this type of business?”
If you’re going to spend your time, energy, and effort on a competitive bid, you are entitled to certain rights. We call this the Seller’s Bill of Rights. Every salesperson has the right to these four things…
A buyer that withholds decision-making criteria is the equivalent of a teacher not telling you how they calculate your grade. You have the right to this information.
Managing a competitive bid or tender is a three-part process: preparation, submission, and the recap. Preparation is key.
“Instead of a competitive bid, ask the buyer for a negotiated settlement. Ask the buyer, ‘What do you hope to get in a bid that we can’t figure out one on one?'”
What if you decided not to participate in their process? Instead, make the customer an alternative offer.
“Never let the bidding process stifle your creativity as a value-added salesperson.”
Our show is updated weekly with the questions you ask. So, please, go to the home page, subscribe, share it with your friends, but most importantly, ask the question that you want answered.
The Q and A Sales Podcast is edited by The Creative Impostor Studios.
Thank you for tuning in. Make it a big day.