Five RFP Red Flags to Avoid
As proposal managers and sales professionals, understanding the subtleties of Request for Proposals (RFPs) can be the difference between a successful bid and a wasted effort. Maybe you don’t care about red flags because you’re afraid you miss all the shots you don’t take, am I right?
But you never use this logic anywhere else in your life.
We are qualifying in and out of opportunities on a daily basis. The neighborhood café offers you a free coffee? Heck yes, you take it! A recruiter sends you a LinkedIn message for a job interview at a terrible company at half your current salary. You politely decline. Someone mildly creepy on the bus asks you out for drinks? Ya, you say no. We are always deciding how to spend our precious time, and RFPs are no different.
Only respond to an RFP if you have a good chance of winning.
Responding to a bad RFP isn’t just a waste of your own time - it also wastes the wider team’s time, it will take some of your manager’s time, and ultimately, it takes a lot of team time away from deals you could actually win. Just like you wouldn’t say yes to that creepy date or shockingly bad job interview because “it might work out,” you need to qualify out of RFPs that are a bad fit.
It can be very difficult to turn off your mindset of chasing after everything; it can feel almost impossible to turn off subjective emotions when you see a high sales number or a shiny logo. But to make smart bidding decisions, you have to start thinking objectively with data. It’s not fun, it doesn’t sound cool, but it is the best way for you to know whether or not you should bid.
Here are a few red flags that always make me re-think bidding on an RFP - and so should you:
Recognizing Red Flags in RFPs
1. Tight Deadlines: When an RFP comes with a response window of less than three weeks, it's a significant red flag. This usually suggests the client has already chosen a preferred vendor. If you're not that vendor, responding might not be worthwhile. I recommend requesting an extension; a refusal often confirms your bid is only a formality.
2. Unknown Stakeholders: Having a pre-existing relationship with the RFP’s stakeholders is crucial. If you're not already familiar with them, try to arrange a meeting post-RFP decision. Their willingness (or lack thereof) to engage can be telling of their true intentions.
3. Procurement-Driven RFPs: If the procurement team is at the helm of the RFP, the focus might just be on getting the lowest price. Unless competing on price is your strength, such RFPs might not be in your best interest.
4. No Budget Allocation: An RFP without a defined budget is often not a real project but a fact-finding mission for the client. Engaging in these can lead to significant resource expenditure with little return.
5. Competitor Language: If your competitor’s specific jargon, products, and services are mentioned in the RFP, then they probably helped write or at least heavily influenced the RFP. This means they are probably the pre-chosen winner. Make sure you do some digging to make sure the procurement manager didn’t just copy and paste an old RFP language into the RFP you’re responding to.
The RFP process is complex, but being aware of these red flags and preparing accordingly can significantly increase your chances of success.
Remember, each RFP is an opportunity to refine your approach and learn. By staying alert to these red flags and strategically qualifying each opportunity, you can steer your resources towards the most promising proposals, enhancing your win rates and business success.
