Page 24 - BOSS Today Issue 52
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BOSS Today #52 DOWN TO BUSINESS
BIDDING
MYTHS
Here are three common bid myths. If you consider any of them to be true, “They will always
perhaps now is the time to re-think your suppositions! choose the big
suppliers; small
companies don’t
image when we are using our new car.
A bid is about price, but it is also about stand a chance.”
long term value and the overall cost of
“It’s all about price; ownership. If your bid illustrates a higher
they will just pick the lifetime value and more efficient cost of
ownership, then you will mitigate a higher
lowest cost.” sale price. Bids that do this well are more
likely to win – even if they are not the
cheapest. There used to be an expression in the
US: “No one ever got fired for buying
from IBM.” This mindset is, of course,
attributable to some buyers. However,
bids from small, agile, independent
or new companies will win major
“They never read contracts because they articulately
This is the one we hear most often and, present a compelling value case, offer
occasionally, it may be true. However, it all anyway.” a convincing cost of ownership model,
people sometimes confuse price deliver compelling evidence, and are
with cost. A winning bid defines the imaginatively presented.
difference. Let’s change ‘cost’ to ‘cost of
ownership’. The price is what you pay to Never Be Afraid to Compete
take ownership of a product; the cost of With Bigger Suppliers!
ownership is what you pay to maintain it Make a case for your nimbleness of
during the period you own and use it. approach: that you are unencumbered by
Think about the things you buy in unwieldy layers of process; that you are
your personal life. Do you always buy Yes, they do. At least, you should assume innovative, pragmatic and dependable.
the cheapest version of everything? No, that they do. In our experience, bids are Focus on your willingness to put the
of course you don’t. You buy what your scrutinised from end to end and good bid customer first and explain why you will
budget dictates and where you perceive evaluators will find your strengths and be better for them. Express the real,
the greatest value to be. In fact, if you weaknesses, identify your excellent value, quantifiable benefits of dealing with a
estimate the value highly, you may be note your inconsistencies, appreciate smaller company. Demonstrate your
persuaded to exceed your original budget. your good writing, and dislike your poor leanness, effectiveness and imagination.
For example, when we buy a new car writing. They will evaluate your entire bid. Small companies will win big accounts
we do not always buy the cheapest: if Make sure every word of your bid is doing by being unafraid to be different and by
we did, we would all be driving around its job, from the first to the last. writing bids that replace the mundane
in fourth-hand vehicles likely to fall with passion and an entrepreneurial
apart like a clown’s car. What we try spirit.
to do is maximise what we will get for
the price that we pay. We will perceive In conclusion, if you hear any of these
value in things like cost of servicing, fuel three myths, have your counter-
consumption and tax cost. We may even arguments ready!
place (an undefinable) value on our own
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