Recently, Productive Strategies Inc. has been getting more questions in its consultative selling training course, FOCIS, about how to handle requests for proposals (RFPs).The number of RFPs received both by companies and by professional services firms seems to be increasing.
How can you maximize your chances of winning?
Smart Business learned from Philip S. Krone, president of Productive Strategies, about two myths surrounding RFPs and three realities that can help answer that all-important question.
Myth #1: Companies that create RFPs know what they want.
Well, sometimes they do. More often, though, they know what they think they want, but don’t understand what they need. Most buyers don’t know as much about what they’re buying as sellers know about what they’re selling. In other words, they don’t know what the best possible outcome is. You are the expert. That’s why they sent you an RFP. You know what the best outcome is because you know a lot more about what’s possible. Knowledge is in fact power.
Myth #2: RFPs are sacred.
No, they are not. Most RFPs are designed with the mistaken notion that they will ‘equalize’ competitors and produce the best all-around ‘deal.’ Again, sometimes that’s true. Mostly, though, one of three things happens, none of them good for salespeople.
First, sellers are driven to compete severely on price. The ones with the lowest price may be the ones who really need the business, not the ones who can do the best job. Even highly qualified companies must work harder to communicate their value.
Second, to take share, sellers who can afford to may low-ball the price. But spending more than you make doesn’t work forever. And losing regularly because your price is too high doesn’t make much sense either. Both kinds of sellers need a new way to compete.
Finally, the companies that don’t really need the business may simply choose not to participate. And that might be OK in the short term. But substantive growth doesn’t occur without truly new customers or clients. Sit on the sidelines too often, and you’ll soon be out of the game. (And, when a seller with high value sits out, the buyer can be hurt, too.)
So what realities can help you make the most of such opportunities?
