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RFPs or
Requests for Proposals usually mean that there
are many other firms replying.
This kind of competition also means it is crucial to differentiate
yourself
You also have to clearly demonstrate that you can meet the client's
needs.
You can't do this successfully without certain
information.
Some of this information is in the RFP but there's also much missing
from the original RFP. To obtain the missing details you must ask
the person soliciting the proposal.
Many clients and colleagues throw up their hand in
horror when I suggest that the first thing they do in reply to an
RFP is to start with questions of their own.
They ask:
1.
Won't the client be annoyed with my questions?
2.
Won't the client think I should already know the
answers?
3.
Won't the client be insulted that I'm suggesting
their RFP was incomplete?
My view is that if the client is serious about the
RFP process, they should welcome your questions. In fact, the more
questions you ask, the more focused and relevant your
response--saving the client time and resulting in a more compelling
presentation.
What can you ask to focus your response and weed out
those RFPs that don't have real potential? These are the ten
questions I recommend:
1.
Why
are you conducting this RFP?
There are many reasons to conduct RFPs
-dissatisfaction with existing suppliers
-cost reduction
-consolidation to reduce management time, etc.
If you know the client's motivation this helps determine what's
needed and how serious they are about awarding the business.
If they can't answer this to your satisfaction, you may not want to
participate.
2.
Why
did you include us?
You want to know what the client already knows about you and how you
are positioned. You can then capitalise on this information to stand
apart in the proposal.
3.
What
criteria are important to you in selecting a firm?
How would you rank the
criteria?
This will help you craft a focused response, honing in on the issues
that are most important to them.
4.
Do you
have a timeline for making the decision?
If they don't have a timeline, they may not be particularly serious.
5.
Are
there any special circumstances of which we should be aware?
6.
What
kind of relationship do you want with your new supplier?
They may be looking for a partnership, a way to expand head count
without hiring or a second supplier to keep the main one honest.
Each approach dictates a different response.
7. What
role will pricing play in the decision?
What issues are of concern about
pricing?
Predictability? Risk/reward sharing?
Cost reduction?
Believe it or not, not all RFPs are about cost reduction, and even
those that are may define cost reduction in different ways. Knowing
the answers to these questions will help you determine the pricing
structure that will appeal most to the client. Many an RFP response
has included an alternate pricing proposal that the client was not
interested in.
8.
Are
there other documents we should review and or people we should speak
with prior to responding?
The more information you can gather, the better you can address
their concerns.
9.
Who is
responsible for managing the competition process?
Who else will be involved
in making the decision?
You need to know who your audience is to craft the most appropriate
response.
If the CFO is managing the process, there's a lot of information in
that fact.
You may want to communicate differently with different people.
10.
How
many other firms are competing?
Which other firms are competing and
who from those firms?
In order to differentiate yourself from your competition, you need
to know who that competition is. Some people won't answer these
questions, but it never hurts to ask.
Responding to an RFP is a time-consuming process.
Before you invest that time, make sure that you have a good chance
of winning by discovering if it is an open competition, what the
client is really looking for, and what it will take to make you and
your business stand out. |
