Competitive bidding can be something of a high-wire act, and the wire becomes even narrower if you’re working to a tight deadline, adhering to fairly rigid requirements, and also bidding against a bunch of competitors.
The good thing is that the vast majority of the mistakes that might prevent you from landing a great contract are totally avoidable, which is exactly what we’re going to consider in this article.
In Part 1, we explored issues that are more technical and pragmatic, such as late submissions and missing documents. In this second installment of “Common tendering failures and how to avoid them,” we’ll focus on your perspective as a bidder and take a closer look at the tendency to center everything around your own company, bid on every possible RFP in sight, and overlook a buyer’s true objectives.
Let’s jump right in!
Problem: The company-centric trap
Too many bids fall into the common trap of focusing too much on the company that is bidding, so the submission reads like a resume - basically, just a dry list of accomplishments, awards, and past work to demonstrate a company’s capabilities.
While a strong resume may be a great asset, there’s a problem with this: an organization that issues a tender often does not take into account a company’s awards or the size of its portfolio unless it can be seen how it relates to its specific problems. Organizations want solutions, and they want to know how a bidding company will achieve those solutions.
When proposals are too focused on the bidder, they can appear to be self-serving, and the company may even appear to be out of touch. A contracting authority that is reviewing bids already has a lot of information to process, so if a bid doesn’t quickly address its pain points or align with its goals, it’s likely to be rejected in a similar way to a recruiter turning away a well-written CV because it describes the perfect consultant but not how the candidate fits the specific role.
A few strategies to escape the company-centric trap
The best way to approach this issue is simple: turn your focus to the organization issuing the tender. Take time to adjust every aspect of your proposal so that it addresses the specific needs and issues that the organization currently has.
Start by learning as much as you can about the organization - what are its goals? What is it trying to solve by procuring the services you can offer? Leverage this information to position your bid as a solution, not a sales pitch.
If the client emphasizes efficiency in its RFP, demonstrate how the solution you can offer will save time and money. If it highlights sustainability, explain how your solution aligns with green initiatives or regulatory requirements specific to the client’s industry. By referencing their goals directly, you will show that you’ve done your homework and that you can contribute to their success.
Most importantly, quantify the value you can bring. Demonstrate how much time or money the organization can save using hard numbers instead of claiming you can improve efficiency. Prove how much productivity will grow or risks will decrease rather than simply stating you can improve their achievements. Clients want numbers and results, not vague promises. They want to be shown how you can deliver their requirements.
This simple shift in perspective - from evidencing your strengths to emphasizing how you can address the solutions they seek - can make all the difference in a competitive bidding environment. It shows that you are not only capable but also collaborative and that you are ready to work hard to achieve results that matter.
Problem: Bidding on everything
Ambition is great, but bidding on every public procurement announcement will invariably just affect the strength of your bids. The risk of being stretched too thin means you could end up with a lot of poorly put-together bids that fail to communicate any value that would set you apart from the competition. This shotgun approach wastes time and money and can put your reputation at risk.
Overextending also puts a lot of pressure on internal resources. Teams working around the clock to meet deadlines often cut corners, and the final product often reflects this. Instead of showcasing strengths, these bids reveal weaknesses.
A few strategies to prevent overbidding
Focus is one of the solutions to prevent excessive bidding. This means developing a robust bid/no-bid decision framework to strategically guide you. Ask yourself: “Does this project actually align with our core strengths?”, “Do we really have the resources to deliver on time without sacrificing quality?”, and “Is the project financially viable enough to justify the investment?”
Focus on opportunities where you have a competitive advantage or a track record of successful projects. This will help to free up resources to develop stronger and better bids for projects that are a better fit for your expertise. It’s not about bidding on everything – it’s about bidding on the right things.
Problem: Poor understanding of the client organization
Generic proposals don’t perform very well in competitive bidding. If your bid doesn’t reflect your thorough understanding of the client’s business, industry, or strategic imperatives, it’s likely that you will be perceived to be lazy or unengaged or, even worse, demonstrate a lack of preparation which is something evaluators can spot a mile away.
Without the appropriate research, proposals often miss the mark, failing to address the client’s pain points or align with their objectives, leaving evaluators wondering if you truly understand their needs. This disconnect can quickly disqualify even the most technically sound bids simply because they don’t resonate with the decision-makers.
A few strategies to prevent superficial understanding
The best way to avoid showing ignorance and that you have only a superficial understanding of the client’s needs is to undertake comprehensive research and this is non-negotiable. Take the time to study the client’s business model and challenges. Review public records, annual reports, press releases – any documentation that offers insight into their priorities and current trouble spots.
What are the client’s aspirations? What hurdles might the company encounter? The more insight you can gain, the better positioned you will be to become the solution provider. Engage directly with the client whenever possible. Pre-bid meetings or Q&A sessions provide great opportunities to clarify client expectations and maybe even build rapport. Use these interactions not only to collect information but also to communicate your genuine interest and commitment to their success.
Final thoughts
Bidding strategically isn’t just about having a strong track record and a competitive price offer. It really requires a shift from self-centered storytelling to actual customer-oriented problem-solving.
By paying close attention to potential client’s pain points, adjusting your proposal to the client’s goals, and concentrating on projects that really align with your company’s strengths, you’ll undoubtedly achieve a better success rate.
So, whether you’re refining a go-to-market strategy or reshaping your entire approach to RFPs, bear in mind that the best bids aren’t just about standing out – they’re also about showing you can meet a client’s needs so well that they can’t help but say yes.