One easy step to deciding if a Request for Proposal is worth your time.
Qualify the opportunity by weighing the pros and cons, and get honest with yourself based on the chances for success and the quality of the deal.
Here are three red flags which will free up hours of your time to focus on activities much more profitable for your business.
1. No relationship with the prospect. If you don’t know them or their business, how can you develop a proposal based on their needs?
2. Financial requirements. Fixed pricing, inventory ownership demands, and ridiculous payment terms; all risk with little reward.
3. Huge Vendor pool. There may be no intention of switching to a new vendor while you’ve invested weeks of your time and are required to submit ideas and pricing that can be used by the incumbent vendor.
Conversely, here are three examples of green flags for good Request for Proposals.
1. Strong relationships. If you understand the client needs and have an internal advocate that will help you win the bid.
2. Shared commitment. The client’s commitment to helping you launch and market the program is key to its success once the deal is won.
3. Small playing field. You’re not 1 of 50; you’re 1 of 3-5 vendors bidding on the RFP. Plus, you know the other vendors so you can position yourself as the best solution.