What Makes a Tender Response “A Winner”?

I don’t know many people who enjoy writing tender responses, and feel that they “nail” them every time. But, in working hands-on with Professional Services businesses day in and day out, I am often asked what makes a tender response a winner. Lets take a quick look…

1. A GREAT CUSTOMER RELATIONSHIP

There is nothing more desirable in a tender process than a great customer relationship! Whilst this has very little to do with your tender response itself it is important to recognise that the relationship with the customer is the single most influential factor in any tender decision making process. If you don’t have a relationship, most of the time, someone else tendering will, especially in local communities like Brisbane, Australia. You can even win a tender without a compliant submission if your relationship with the decision makers is good enough. A customer that trusts you to deliver a great service doesn’t need to competitively tender your services and if they do, you can occasionally go in knowing you are in the box seat!

2. UNDERSTAND THE REQUIREMENTS EARLY

Whilst it might seem easy to ignore that tender in your intray until the last few days, it really is worth glancing at it well in advance of its deadline to understand a) what is required, and b) if there is any compliance issues that you will need to address, or partner with another firm to achieve. Leaving it until the last minute and throwing in a non-compliant tender response is almost always a waste of your time and effort and will annoy the decision maker and demonstrate your laziness too.

3. BE CONCISE AND WELL STRUCTURED IN YOUR APPROACH

I prefer to start all of my larger tender responses that require input from others with a document and resource plan. This plan schedules the inputs from each of the other stakeholders on my tender team, and ensures that everyone manages their time and meets the team’s expectations and deadlines. This plan lays out the table of contents for the document, and allows us to write only the content that is needed to build a concise response. It sets the admin team in action, and builds a baseline document for everyone to work with.  It only takes 20 minutes to do it, and it saves hours!

4. RESPOND TO EVERY “BLEEDING OBVIOUS” QUESTION AND EVERY ITEM OF SELECTION CRITERIA

Crawling through a selection criteria document with a highlighter pen might not seem like such a fun idea, but if you really want to win a tender, this is an important thing to do. Your submission should address all of the questions asked in the request for information, in the format that your Tenderer requests it in, not necessarily the easiest, or most comfortable format for you to produce it in. Decision makers prefer a tender response that can be easily checked against their criteria so that they can clearly see the responses to the questions that they perceive as critical to their project and rank you without any extra effort. You also reduce the risk of the decision makers “missing” a key message you have presented, if it is answered directly and succinctly where expected.

5. RESIST THE URGE TO CUT AND PASTE

There is nothing worse than reading a disjointed bunch of sentences with no linkages that have obviously been “cut-and-pasted” in a rush from an older tender response. It says to a client that you don’t take the time to do things right, and waves a big red flag at the decision makers. You might get by doing it in a buoyant market when there is plenty of work around, but try it now and I’ll bet you get very poor feedback!

6. CUSTOMISE YOUR SOLUTION TO THEIR REQUIREMENTS

A generic service will rarely win a competitive response, as it is just not going to connect with a customer’s belief that their problem or project is completely unique and warrants a special service. You need to buy into the client’s vision that their project is unique and customize a “special” solution to their problem that makes them feel like they are getting value for money.

7. PRICE COMPETITIVELY

It’s a tough tough marketplace out there at the moment. Service providers are jumping over each other at the “best and final offer” (BAFO) stage to discount and win work that will mean their survival for a few more months, even if there is a nil or negative margin on the job. Clients know this, and are enjoying their shining moment. So when you price a job, go in at a reasonable enough price to get you on the shortlist, but be sure to leave room in there for a haggling client… allowing you to further reduce for a best and final offer. But be aware of how low people will go.

8. TELL THEM WHY THEY SHOULD CHOOSE YOU

Many people forget to do this. They spend reams of paper explaining their solution, their staff and their approach, but they forget to point out their unique selling proposition, or “why the Client should choose you”. Make a special page in your tenders that tells your Tenderer why you are the best person for the job – and customize it for every response (NO CUT AND PASTE HERE PLEASE!).

9. VALUE FOR MONEY

What can a client get for nothing, or for a perceived “value for money” price if they choose your company? Perhaps it’s a special workshop with an important person, or a hard-learned life experience that you have that will reduce the time or cost of a project. Clients love to think that they are getting great value for money, and it never hurts you to tell them how you will provide it. Consider putting a section in your documentation called “Value for Money”. Think of it like getting a 2 for 1 deal at the supermarket, people often can’t resist a bargain, even if it costs them more in the long run.

I’ve been writing tender responses for my Clients for years and years. Through bull and bear markets, at high and low margins. These are just a few of my ideas…off the top of my head. What other tips do you have that we can share to improve our tenders and competitive responses to clients in a tought environment?

Stretch Marketing works with professional services businesses to provide strategic marketing and business development services.  For more information, please contact us at info@stretchmarketing.com.au.