Bid Qualification Process
Half the battle to winning tenders is selecting the right ones to pursue. Here are the key questions to be asking yourself during the bid qualification process and bid no bid processes before commiting your valuable and scarce resources to the tender process.
Hi Guys, to start this series we’re going to look at a process to help you win more tenders, but it’s not something you do during the tender.
This is a process for helping you choose opportunities that have the highest likelihood of success.
First step is to qualify the opportunities in your sales funnel to decide which ones you’ll expend the effort pursuing. Then, when the actual tender arrives, you make a bid no bid decision to decide that it’s winnable and likely to be profitable work.
Not doing this will see you chasing and bidding everything and overloading your team, resulting in poor quality proposals that don’t win.
Our mantra here is “bid less, win more”.
Bid Qualification Process
Firstly, set up a bid qualification process to exclude opportunities in the early stages that just aren’t going to amount to anything.
Ask yourself these questions:
- Does the client have funds approved to do this work?
- Do we have a product or service to satisfy the client needs?
- What is the buying history of the client, that is, does he buy or is he just a tyre kicker?
- Do we have a relationship with the client and will they buy from us?
If you can’t answer the majority of these questions positively, consider walking away and focus on opportunities that do rate better.
Bid No Bid Process
When the tender arrives you need to make a formal bid no bid decision, the fundamental questions you need to answer now are:
- Do we understand the opportunity? If at this late stage we don’t have a relationship with the client, don’t know their budget or understand the scope of work, it’s going to be very difficult to submit a winning proposal.
- Can we compete? Forget about price for a moment, this is about understanding if what we have to offer is what the client wants and whether we have the resources to develop a winning proposal.
- Is it worth winning? Is the contract you win likely to be profitable and does it fit with our company’s strategic intentions.
- Lastly, Can we win? Based on our market knowledge, is what we will offer likely to be within an acceptable price range and do we have confidence in our estimates so we’re sure we’ll make money.
Again, you need to come up with positive answers to the majority of these questions to justify proceeding to tender.