So many of my clients ask me, don’t I just need to be the cheapest?
Success is often measured by how much money one can save, especially in the business world. It’s believed that winning the bid is all about offering the lowest price. Don’t get sucked into this approach and I urge you to have the confidence to back your company and what value it will provide. Winning a bid and securing a contract is much more complex than just being the cheapest. Redefining success in the bidding process requires a shift in perspective. It involves understanding that quality, innovation, and reputation play a vital role in securing long-term business relationships.
Winning the tender is not just about the immediate gain but also the long-term value that a company can bring. In this blog let’s chat about why winning the tender isn’t just about being the cheapest and what companies can do to redefine success in the bidding process.
The Traditional View on Winning
Let’s wind back a bit and remember what the traditional view was. It has been based on offering the lowest price. It was the thought that by undercutting competitors’ prices you could secure the contract and win. Clearly this approach has some negative consequences. First, it creates a race to the bottom. Not a good race.
Where companies are forced to continually lower their prices just to remain competitive. This can result in a situation where businesses are not making enough profit to invest in research and development or to maintain their current level of quality.
For clients, choosing the lowest bidder can lead to poor quality work, missed deadlines, and ultimately a loss of trust in the business. In the long run, this can result in lost business for the company and a loss of reputation. So, everybody loses.
Redefining success in bidding requires a shift in perspective. **read: let’s not focus solely on price**
There needs to be more focus on delivering value to clients by understanding the client’s needs and offer solutions that meet those needs. Communicating your value effectively, so that the client understands the long-term benefits of working with your brilliant company is key. By focusing on value instead of price, businesses can differentiate themselves from their competitors and standing out from the crowd is what counts.
The Importance of Value over Price
Value is more than just a lower price. It includes factors such as quality, expertise, and innovation. By offering value to your clients, businesses can differentiate themselves from your competitors and build trust with your clients. This can lead to increased loyalty and repeat business. It also means that businesses can charge a premium for their services, which can result in higher profit margins and that’s what we’re here for.
Building Relationships with Clients
Building relationships with clients is also essential. This means that businesses need to understand their clients’ needs and offer solutions that meet those needs. Read that sentence again. It also means that you need to communicate effectively and build trust with your clients.
So, what have we learnt?
Redefining success in the bidding process requires a shift in perspective. Instead of focusing solely on price, let’s need focus on delivering value to clients. Understanding their needs, communicate your value, build relationships and trust. By following these tips, hopefully you can unlock new opportunities, increase customer loyalty, and ultimately lead to greater success in the long run.
Kristine Daw is the Managing Director of Dawtek, a Melbourne-based company specialising in tenders and proposals, technical writing, business documentation, copywriting, editing and creating business templates. Kristine and her small team have a range of clients including small businesses, multi-national corporations, all levels of government and not-for-profits. 1300 DAWTEK or dawtek.com.au
If you’d like to connect with a tender writing professional with almost two decades’ worth of experience, let’s organise a time to chat.