Should We Respond to that RFP? | agencyside

by Barbara Weaver Smith, Founder and President of The Whale Hunters

It’s getting harder and harder to do business without responding to RFPs.  More companies are demanding them, and unless you have a strategy to compete effectively for RFP business you will leave money and opportunity on the table.

But RFPs are dangerous.  Not only do they drain time and energy from work that you’ve already sold or other new business opportunities that offer you more control, they also leave you vulnerable.  Some companies use the RFP process only to get new ideas for their internal team, or to lean on their current agency for more creative ideas and cheaper pricing.  It’s quite possible that your proposal will make its way into the hands of a competitor, whether internal or external.

So it’s important to have rules that you follow faithfully when there is an RFP opportunity.

1.        Does it fit your Target Filter criteria?  In other words, is the opportunity right for you?  The right size, the right industry, the right services required?  If not, don’t respond.

2.       Do you have a prior relationship with the organization that put out the RFP?  If the answer is “no,” don’t respond.  Yes, I know there is an occasional fluke where an unknown company gets the job.  But it’s rare, and the odds are stacked against you.

3.       Is there an RFP consultant or head hunter advising the company?  If so, you need to have a relationship with that consultant.  They always prefer that the job go to a vendor with whom they have a prior relationship.  If you don’t know the consultant, don’t respond.

4.       Can you discern why they want to make a change?  Do they have a job that their agency of record can’t do or doesn’t want to do?  Are they looking to fill a niche that is just right for you?  Or do they want to change agencies?   If so, do they change too frequently (a sign of instability and trouble ahead for you)?  If you don’t know what they are trying to accomplish, you don’t know them well enough to respond to their RFP.

5.       Have they allowed sufficient time for a good response?  If it comes in over the transom with a seven day turn-around request, it’s wired for someone else.  How much time is reasonable?  Thirty days is fair.  Three weeks might be okay if it’s a smaller request.  Otherwise, don’t respond.

6.       Do they have excessive creative requirements?  Remember, you are vulnerable every time you design a solution and send it along on paper.  Reputable companies know this and ask for examples or prior experiences without requiring you to invent a plan for them, which of course they could then implement internally or share with an incumbent vendor.  If the requirements seem excessive, they probably are.  Don’t respond.

The bottom line on RFPs is this:  unless you are well-connected with the organization that offers the RFP, you know what they are trying to accomplish, and you are certain it is a good fit, you are better off to let it go.

If you have not yet developed the kinds of relationships that will position you to win RFPs, now is a great time to start!  Get to know an RFP consultant who represents customers that you want.  Introduce yourself and your company to purchasing agents at three key target companies that you would like to do business with.  Learn what they are looking for, how they buy, how you can be competitive in their RFP process.  The time to build the relationship is before an RFP is released, not after.

And make it a New Year’s resolution to “Just Say No” when you know you should!

Co-author of Whale Hunting: How to Land Big Sales and Transform Your Company, Barbara Weaver Smith founded The Whale Hunters to bring a powerful, proven sales and business development process to small companies that want a fast track to growth.  Barbara consults with companies to implement The Whale Hunters Process, trains regional representatives, coaches teams responding to mission-critical RFPs, writes The Whale Hunters Wisdom newsletter, and authors The Whale Hunters blog.

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