Better Bid Decisions: Part 1
Bid decisions are an inevitable part of the public sector sales process and, unfortunately, can distract from your business more than build it if you’re not careful. Sales and proposal professionals who take a qualify-first approach to these crucial bid decisions will no doubt allocate appropriate resources to drive the highest impact and leave the tempting distractions behind.
Since it is way easier to decide to pass on or respond to opportunities that fall on either end of your company’s best-fit spectrum, how do you decide on all the rest of the opportunities to invest your time in?
Intriguing question. Here are two questions to consider as you qualify these opportunities in or out:
What is the financial impact of responding? Companies spend anywhere between 15 and 50 hours responding to a single bid opportunity. Multiply this precious time cost by the hard costs of responding personnel -- anywhere between $40/hour to $60/hour -- and you have a reasonable understanding of the financial impact per RFP. On the high end, a single response costs your company $3,000, without production and shipping costs. Multiply this by 25 uninformed bid decisions and you’ve cost your company $75,000.
What is the level of effort required to respond? Resource constraints exist in companies of all shapes and sizes. When deciding, consider the amount of available and relevant pre-existing product, legal, and security content, available response personnel, time left before the response deadline, cost to produce a competitive response, and what other activities will need to go by the wayside in order to focus on this opportunity.
We will explore other qualifying questions for public sector opportunities in future posts. Until then, be awesome!