WHY RESPONDING TO EVERY RFP WILL COST YOU
You know that person who wants to respond to every RFP because “You only miss the chances you don’t take?” That person is not only wasting your company’s time and resources, but they're also losing you the RFPs you actually have a shot at winning.
Sometimes the best way to make money is to not respond to an RFP.
Responding to Every RFP Will Lose You Sales
Your proposal team takes a considerable amount of time and effort responding to an RFP - and it's taking time away from winning other deals. That expended effort better land you a sale.
We all know the whole point of responding to an RFP is to win a client and increase your bottom line.
But when you respond to an RFP you can’t win, you’re wasting limited resources on a project that just isn’t going to make you any money. To make it even worse, you’re decreasing the time spent on RFPs that have a possibility of winning.
Let’s say you have two RFPs, and both are worth $15,000. You know you’re not going to win the first one, but you have a slight chance at winning the second. Your writer has no choice but to rush both responses. She can’t give the second RFP the attention it needs to beat your competitors’ responses. The result is you probably lose both RFPs. Instead of walking away with a new client and $15,000, you have zero new clients and a month’s worth of squandered time and salary.
Spending time on a losing RFP could cost you a win – ensuring you lose valuable time, resources, new clients, and a better revenue. Don’t make that mistake.
How to Make the Decision
The decision on whether or not to respond can be stressful. I suggest you use these seven questions to help you decide whether or not bidding is the right choice.
Do we meet the minimum requirements?
Do we have a relationship with the client?
Is this a closed RFP?
Are they looking for the service we’re offering?
Would this be a strategic client?
Is the main decision maker going to say yes?
Do we positively answer the highest weighted section?
If you answer “Yes” to most or all of these questions, then responding is probably a great choice. Go write that proposal!
If your answers to most of these are “No,” or you can’t answer the mandatory requirements, you need to seriously consider skipping this RFP.
When you receive an RFP, mark the mandatory requirements you can’t answer positively. Strategically ask the prospect how you can change the mandatory requirement. Get co-workers from around the company or even an SME from outside your company to plan a different (but honest!) approach in answering the difficult requirements.
If you still can’t meet their mandatory requirements, maybe it is time to move on to the next RFP.
When to Make the Decision
The decision to respond is a continuous process. It can be made before the RFP has been released until the date the submission is due.
The sooner you know a proposal is a no-bid, the less time and money you’ll waste on the RFP. Now you have more time to spend on the RFPs you have a good chance at winning.
But what about after you’ve already written most of the response? I get it. It’s hard to let go of something you and maybe your whole team have worked really hard on. I've shed my fair share of metaphorical (Ok, maybe some literal) tears on the hours spent on a response that will never be submitted. Brush those tears away and do not get dragged into the sunk cost fallacy.
Think of it this way: The moment you stop putting time into an RFP you can’t win, the more effort you can put into another RFP that will help your company meet its sales goals.
If you have any other suggestions for steps to make the bid/no-bid decision, let me know!
