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Mark Hunter, The Sales Hunter, here and let's talk about RFPs -- you know,
Requests for Proposal... you know, the bid process and so forth. And
here's a real easy simple thing that I say:
If you didn't help write
the RFP, your chances of earning that RFP
are zero. Now they're not zero, but they're very very minimal.
Just because you are invited to participate
in an RFP does not mean that you should.
Strategy is this: Only put time and effort
into those RFPs that you think you have a valid
reason to win. Now what I mean win -- and I don't mean win. What I really should be
saying
is "earn" -- you want to earn it -- RFPs are (a)
I have a valid chance of earning because I'm gonna get the bid
or (b) I'm going to learn something about the customer
this round that I know I'm gonna lose -- I know I'm not going to get it -- but I want to
learn something about the customer that's going to put me in a better position to
negotiate with them
or participate with them in an upcoming RFP or (c)
I want to be able to signal to the industry... I want to be able to signal to the industry
either my participation or where I'm at the industry
or (d) I want to be able to
help hurt my competitor. Now some people are going to get a little upset over this,
but I truly believe this, because here's what happens when it happens -- and believe me, it happens all time:
I want to get a competitor set up to where they actually get the business, but
they get it at such a low price that they can't make
any money off it.
And then what I can do is I can come back in and get 1/20th
of the business, but make as much profit as them,
because I didn't lose -- I didn't win... ooh... what is that? No,
I got an RFP, "I got the contract,"
but it's at such a low rate that I can't make any money off it.
So what happens is the second runner-up one is able to make the money.
The strategy is this -- know what your strategy is
before you start working on any of the paperwork.
Too many times I see salespeople go sit there and they've spent hour after hour, day
after day after day,
and they get so far to the process, and then they realize they can't get out of it,
and yet they're stuck in a losing situation. Set your strategy up
beforehand --
before you even decide that this is an RFP.
And I will argue this -- far too much time is spent by salespeople
chasing RFPs that they have no right...
no right to be participating in, but they're doing it as a way of making
themselves look
busy. Sorry but that's not the way to be busy. Sales managers,
control this! Control this tight. You
make the decision as to what RFPs your salespeople can participate in
before they start. Mark Hunter, The Sales Hunter. Great Selling!