Five Realities About RFPs

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Sales tips blog with sales skills information for sales professionals and sales management.Like most sales professionals reading this sales blog, I’ve submitted too many lengthy and time-consuming complex proposals to companies who were just using me as an information source or a comparison point.

There is a technique we can use that will significantly reduce the amount of time we spend on proposals when the soliciting company may not view us as a legitimate bidder.

“…there is a very good chance that you are on the designated loser list…”

Sales Newsletter: First, The Realities of RFPs (Request for Proposal)
1.
If we don’t have some kind of existing relationship with the soliciting company, our odds of winning the bid are not so good.Sales Tips on RFPs, Sales Newsletter Review

2. Before a company writes the first word of their RFP, they have a short list of two to three bidders they’ve targeted to win, even though they may send it to a dozen or more bidders. If we haven’t been asked to provide any input as they craft their RFP, we can be sure we’re not on their short list.

3. When we receive a completely unexpected RFP, the only prudent thing to do is to immediately put it in the recycle bin. If we had no prior knowledge that this RFP was coming, we most likely aren’t going to be selected as the winner.

4. Soliciting companies rarely select a winner on price only. They’ve already decided what features they want and who has them. They also know what the costs will be and have budgeted accordingly. We shouldn’t waste our time fixating on price when preparing proposal responses.

5. Most RFPs have some comment claiming that no, or at most limited, contact is allowed between the soliciting company and bidder. I don’t care how many times it says this, if you’re on their short list of winners there won’t be any limitations as to how often you can have contact.

Sales Tips for Finding Out if You’re on the Short List
The next time you respond to a complex RFP, submit a preliminary abridged draft proposal with the soliciting company. Tell them you would like to make a 30-minute appointment with them to review the draft proposal to ensure everything is on track. Let them know this is important because you want the response to be thorough and accurate and that you will be investing a substantial amount of your company’s resources in the proposal process.

Sales Blog Wrap-up
If they won’t agree to this meeting, then there is a very good chance you are on their designated loser list. It can indicate that you are nothing more than a required data point they will use in order to compare your proposal against the bidders they have on their short winner’s list.

Use the dozens of hours you just saved to go after business where you stand a reasonable chance of scoring a win.

Further reading: A #1 Proposal Tip

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This entry was posted on Tuesday, October 14th, 2008 at 2:00 am and is filed under For Sales Representatives, Selling Skills. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


3 Responses to “Five Realities About RFPs”

  1. Sales Cooke Says:

    You nailed this. Too many companies think they need to respond to RFQ’s when they do not have a chance. It is a complete waste of resources, time, and paper. I am going to promote this post on my blog site (www.salescooke.com).

  2. Trevor Says:

    AMEN!

  3. Why We Do Not Need to Respond to RFP’s | PURE COOKE Says:

    [...] We Do Not Need to Respond to RFP’s I just stumbled on a great blog by Scott R. Sheaffer, Sales Vitamins entitled "Five Realities of RFP’s."  This article reasonates with [...]

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