“Top Ten Things I’ve Learned About RFP’s”

With a number of years responding to Requests for Proposals (RFP’s), I have learned a few things about these dastardly thorns in the side of a Sales Pro. It is an interesting buying process for the customer. In the government, it is mostly mandated. In the corporate sector, it might be mostly desired, but rarely followed, depending on your industry or product. One fact for sure, RFP’s are highly resource-intensive on both sides of the table, for both buyer and seller. In these days of “do more with less”, that very aspect of the RFP stays at the forefront of my mind while deciding how to handle the newly-arrived RFP. Here is what I have learned, or come to question, about RFP’s: (Forewarned, this is not the Letterman format, 10 is best!)

1. There are three types of RFP processes: (1) The process where contact and communication are allowed freely through-out (2) The process where contact and communication are closely guarded or totally prohibited through-out (3) The process where you are the incumbent. In response to each situation, I say respectively, “Play, Run, Must Play”! The words of my second-grade teacher at recess are ringing in my ears!

2. RFP processes that do not allow a free exchange of ideas and questions between participants and customer do not educate the customer and will most likely end up in a poor decision for the customer, unless there are experts on your product and industry on the side for the customer. So why do buyers, without experts, sometimes put up so many barriers? They don’t want to be bothered by account teams? It shows the respect they have for our profession. I say let them go away in this case, if unsolicited. Even if you win it, it will likely be a relationship-poor and margin-poor relationship between the two companies. Bad divorce coming!

3. The RFP you helped to write is likely the one you will win. The RFP that arrives unsolicited is likely the one you will lose. This one’s been around since Ben Franklin sold his first time-piece! I wonder if Ben ever put his kite up into a cloud of incoming RFP’s and hit lightening??!!

4. Every study that I have conducted suggests that my team will win 10-15% of unsolicited RFP’s. Miller Heiman and other reputable sales training firms will likely back that up. What’s the opportunity cost of NOT pursuing other non-RFP opportunities to spend the time winning that 10-15% of the business? I say mostly it is not worth the trade-off. It’s like playing the slot machines. When do you quit throwing quarters at the machine and decide it’s time to go home and earn an honest wage?

5. Over a third of delivered RFP’s never result in a decision. More than 50% of RFP’s, when awarded, result in a major change of scope, almost always downward, significantly. My opinion and experience anyway. It’s the princess before midnight, and then it turns into an ugly pumpkin. And you spent all that money on the prom dress!!

6. Beware the RFI (Request for Information) that is supposed to result in an RFP. As the vendor, if you can make your presence “felt” by the prospect in the RFI stage, keep chasing it. Otherwise, run! How many RFI’s do you think even really turn into RFP’s? An extremely small percentage. We’re back at the Black Jack table! And your partner is up in the hotel room ordering expensive room service!

7. No single RFP is ever the same. Why can’t we make a rule in our business that “all RFP’s must have the same format for our product?”  The fact that no RFP and RFP response will ever be the same, suggests that if your organization decides to spend much time here, that a dedicated group, or an RFP Response Team is put in place, so that traditional selling resources are freed up to do what they do best. This is a significant investment but required if RFP responses are significant to the company’s sales plan. Do you really want your OUTSIDE Sales Pro’s INSIDE in the company library pulling volumes of material and editing content? That’s like asking the landscaper to paint your living room!

8. In any RFP response, follow the customer’s format, question progression and instructions to the absolute letter-of-the-law. Put many sets of eyes on the final response. This cannot be overstated. The easier it is for the client to read your response (with a quality response, of course), the faster you pile on points for your team.

9. If you are the incumbent, take nothing for granted, but know that you have the biggest advantage in your favor: change is extremely hard for a customer toward a new provider. If you have provided good service and quality at a fair price over the preceding time, the odds are overwhelmingly in your favor. Got to bed tonight, get a good night’s sleep and attack it with fresh eyes tomorrow! The princess will still be a princess!

10. Here’s the RFP I like most. Our Sales Pro creates the opportunity through great discovery and relationship-building with a number of decision-makers. The solution begins to become scoped and the prospect suggests, “yes, but we must go to bid.” This Sales Pro does not quiver. S/he is extremely confident that she has everything in his/her own favor, and plays willingly and enthusiastically. Because s/he has the deal “under control”. There are no pressure tactics to force the prospect’s hands at not going to bid and there is no remorse on the part of the Sales Pro. In the end, it is a win-win for the prospect and the provider.

Is Number Ten nirvana for you? Maybe it is, but it should be your goal to create situations like this. If you’re in control, it makes perfect sense to let the deal take its course in accordance with the prospect’s buying process.

So maybe you can tell, I don’t like RFP’s. Truth be told, I don’t. They make capitalism inefficient (government business excluded from this remark). But I understand its role in our marketplace. And I have won my fair share of them. As a provider, just be sure that you have a well-planned and well-supported process for handling them. I hope the “Top Ten” help you and your organization to find that kind of governance if it is not already present. Good selling!