In an industry downturn it can be tempting to bid on all opportunities even if the win ratio is low.
In the QSales methodology we teach that more profitable share gains come from
- Knowing when to ask for a direct award.
- Bidding very high when the win chance is low to signal to competition they should start raising prices.
- Bidding very very low and then selling up during the clarification round of the tender.
- Going no bid to force a favorable comparison.
- Knowing as much as possible before a tender is issued and being convinced that most buyers do not choose on price alone are the best practices needed to understand when to bid and when not to bid.
Managers and sales teams make great progress in the bid vs no bid challenge when they dispel the three great myths that prevent sellers from locking in customers and winning more profitable opportunities:
- Myth 1: All customers want the lowest price.
- Myth 2: There is a market price.
- Myth 3: We must respond to every RFP/tender and win on price.
Even in a difficult market we can win more work by focusing on improving the customer’s performance as the primary mission of sales, by realizing there is no specific market price, and by declining to bid or tender on opportunities that are unfavorable. The foundation of the QSales approach to winning profitable share rests on minimizing the time and resources devoted to answering bid requests and putting more time and resources into proactively understanding customer value, satisfaction and loyalty drivers before the bid request or tender is issued.