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A World Without A World Without RFPs...RFPs...
we can only hopewe can only hope#NoRFPs#NoRFPs
Courtney PembertonCourtney Pemberton@cpembyrun@cpembyrun
Todd NienkerkTodd Nienkerk@toddross@toddross
Why we are talking about Why we are talking about RFPs?RFPs?
Why do customers make Why do customers make RFPs?RFPs?
•Market Price & Leverage
•Qualify New Vendors
•Free Consulting
•Standard Procedure
Market Price & LeverageMarket Price & Leverage
Qualify New VendorsQualify New Vendors
Free ConsultingFree Consulting
Standard ProcedureStandard Procedure
Why do vendors respond?Why do vendors respond?
•Vendors can be naive
Customers’ reasons
Vendors’ reasons
Are RFPs a waste of time?Are RFPs a waste of time?
SchipulSchipul
•37-person company
•Web design and development, SEM and Social Media, Web Marketing
•Dedicated Teams – Sales, Programming, Creative, Technical, Support, Operations
•High Volume: 150 projects/year
•Typical Timeline of Projects: minimum 3-6 month commitment
•Average project budget: $10,000 - $20,000 budget
SchipulSchipul
•10-20 hours per RFP response
•Over 60% of business comes from current clients or referrals
Four KitchensFour Kitchens
•12-person company
•Web design and development (no marketing)
•No dedicated sales team
•Low Volume: 5 projects/year
•Typical Timeline of Projects: minimum 6-month commitment; usually 2 years
•Average project budget: $250,000 budget
Four KitchensFour Kitchens
•30-40 hours per RFP response
•85% of work over the past 5 years involved no RFPs
So…are RFPs good for So…are RFPs good for business?business?
We donWe don’’t think so.t think so.
Do an exercise to figure it Do an exercise to figure it out…out…
•Grab some post-its!
•Ask yourself some questions… What % of RFP-driven proposals so you
win? What % of work doesn’t involve an RFP? How much revenue are you losing per
RFP response?
Other downsides to RFPsOther downsides to RFPs
•Free Work?
•Vendor Creativity?
•Opportunity to Build Trust?
Free Work? No way.Free Work? No way.
Vendor Creativity? Gone.Vendor Creativity? Gone.
Opportunity to build trust? Not a Opportunity to build trust? Not a chance.chance.
““Be cost efficient. Or be Be cost efficient. Or be innovative. Just make innovative. Just make
sure you stand out sure you stand out from the crowdfrom the crowd””
-Ken Carty-Ken CartyVP & Chief Procurement Officer, Coca-VP & Chief Procurement Officer, Coca-
ColaCola
What are your options?What are your options?
Establish customer/vendor relationship
In-person pitches
Ask the right questionsOpen bid?Is it a good fit?
Take a stance
Dear Customer…help us, help Dear Customer…help us, help you!you!
Tell us your budget.
Dear Customer…help us, help Dear Customer…help us, help you!you!
Beware of low bids.
Dear Customer…help us, help Dear Customer…help us, help you!you!
Remember that you are establishing a relationship.
Your vendors want a relationship, too.
Dear Customer…help us, help Dear Customer…help us, help you!you!
Don’t let bad vendor experiences jade you.
Dear Customer…help us, help Dear Customer…help us, help you!you!
Don’t ask for free work.
Dear Customer…help us, help Dear Customer…help us, help you!you!
Pre-qualify vendors.
Don’t open bid.
Hyper-communicate.
Dear Customer…help us, help Dear Customer…help us, help you!you!
Tell us why you didn’t choose us.
Questions?Questions?
Thank You!Thank You!