Feature Article
In a recent workshop on How to Influence Corporate Procurement, I was asked how you can spot bad RFPs - in the sense that they are sent out to you without any intention of offering you the business. My initial reaction was: "You will have a gut feeling that something isn't right", but upon reflection there are certain and easily identifiable flaws in badly conducted RFPs.
The following 6 signs within RFPs should give you alarm bells.
1. First contact
The first time you hear from your prospect is when the RFP hits your desk. You have had no discussion with the sponsor, users or Procurement Manager.
This is a strong indication that your prospect is following Procurement guidelines and needs to get x number of responses. Your company is being used to ensure your prospect has the required number of responses. The lack of prior contact indicates that they have not fully researched your offering and you are therefore unlikely to be selected.
2. Copy and Paste Text
If you receive a RFP that is clearly a result of a copy and paste exercise from another RFP, beware. Procurement Managers will try and save time and some copying is inevitable, but if the product questions are looking a little "off" then it is a warning sign that the author has limited knowledge of the subject matter or that the decision makers have not proof read the document, or (even worse) that the text has been written by the incumbent. These are all indications that a new supplier is unlikely to win the business.
3. No money
Some organisations will use the RFP process to research the market and obtain pricing information. RFP responses will be used to underpin the subsequent business case for budget. If the RFP says that the project you are bidding for is a new initiative and that no budget has been set yet, be aware. Your prospect will be happy to receive your free consulting and pricing data but no business might ever be placed with any of the bidders. Ideally, your prospect should call their document a Request for Information (RFI) and then you know where you stand. You can then provide product info but have no obligation to provide pricing data.
4. No access to decision makers
This is widely regarded as the biggest alarm bell. If you receive a RFP and then get told you cannot speak to those using your services or products, the focus is on the wrong thing. Only companies looking for the lowest price or for free consultancy don't allow free access. There need to be an opportunity for exchanging views if your bid is going to be scored on "value" and not price alone. If personal meetings are not allowed, the best thing would be to request that written questions can be submitted prior to you responding to the RFP.
5. Short response periods
Seriously consider responding to a RFP that needs a response in less than 2 weeks from date of issue (especially when you have been given no warning). If there is an incumbent who is bidding, immediately discount the RFP. It is highly likely that the incumbent knew about the RFP well before the 2 weeks deadline and that the prospect has no desire to seriously consider an alternative. Best to let the opportunity go by, rather than working day and night in order to try and win the business.
6. No motivation to change
Assuming there is an incumbent, if your RFP makes no mention of why things need improving, or why the current situation is not working, be extra careful. If your prospect has no "problem to fix" including problems created by the incumbent, then there is no reason to leave them and switch to your service or product. In the end, the incumbent will retain their business and you have wasted your time in responding to the RFP.
If you see 3 or more of the above mentioned signs you should seriously consider not bidding, as it is not worth it.
If you want to comment, please email me at wanda@amycus.com
To
your success
Wanda
 Note from Wanda
In my spare time I help people overcome their fear of public speaking.
The main elements around overcoming fear are positive feedback, practice, having a sound structure and expert positioning (i.e. talk what you know about).
Of course, all of this is directly transferable to training sessions, business meeting or sales presentations. A "sound structure" could be a framework or a model (e.g. the 7 steps of x, the 5 elements of y). I will be looking to enhance my "How to Influence Corporate Procurement" workshop and give it a sound structure. Do
please give me feedback on what you think of my Newsletter and what topics you
want to see covered next, by contacting me at wanda@amycus.com. |
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