Tag: advice

Top 5 bid writing mistakes: Not knowing how your pricing fits into your strategy

In this series of posts, I am addressing the common errors that occur time and time again when writing bids. Below is our 3rd post and will address the following mistake: 

Not knowing how your pricing fits into your strategy 

Often businesses, or the individual in charge of tenders, will focus on pricing for a tender, but there is a need for a more comprehensive decision-making process of which price is only a part, albeit an important one. In other words, agreeing one number is not a strategy. A price should be agreed upon following the implementation of an overall bid strategy and not the other way around, or in isolation from the bid strategy.  These are the main issues we see, where pricing is either decided on its own, or looked at too late and not aligned to the offer as a whole. Either approach isn’t fit for purpose as there is always a need to understand the drivers behind your prices.  
 
For example, you should ask yourself: 

  • What is the context of your chosen prices in regard to your entire offer? 
  • Are you able to offer unique value adding services or are your competitors able to offer exactly the same? 

Knowing the competitive environment and the key drivers for the customer are paramount to making good decisions.  The prices need to balance your chances of success with the value derived for the contract, which won’t be possible if you don’t give your pricing the time and contemplation it deserves. 

There are ways to look at this in more detail. For example, from our contract award database we could provide you with information about who specific contracts were awarded to and their values going back five years. From here it would be possible, by looking at the spend reports from individual public sector authorities, to start estimating how much incumbent suppliers are charging for their services. This type of analysis can help prevent your pricing strategy from being a shot in the dark.  
 
If you are interested in using contract award data to inform your pricing strategies, you might be interested in our Competitor Tracking Alerts. Not only do we offer a five year archive of contract awards, you can also track an unlimited number of competitors and receive alerts whenever they win high value public contracts.


For my next post, we’ll look at the the issues associated with leaving things to the last moment.

In the meantime, if you’re looking for specific help with your bid, please get in touch. Every week I help clients with their tendering, from bid writing to leading on bid responses. Use the details below to view the range of services we offer or to contact me directly. 

Tel: 07384818704
E-mail: andrew.watson@proactis.com  
Web: View our training and consultancy services 


Other posts in the Top 5 Bid Writing mistakes series:
1 – Failing to prepare and preparing to fail
2 – Biting off more than you can chew
4 – Too little, too late
5 – Overlooking key details

Top 5 bid writing mistakes: Biting off more than you can chew

In this series of posts, I’m addressing the common errors that occur time and time again when writing bids. Below is our 2nd post and will address the following mistake: 

Biting off more than you can chew 

Bid submissions can often be handled like a hot coal, with just one person eventually assigned to handle a submission in isolation. This inevitably leads to issues, misunderstandings or an underestimation of the time and resource required. You need to have the right people engaged and contributing to the bid from the beginning, and across the breadth of a business, in order to fully represent its capabilities. 

Too often we also see organisations respond half-heartedly to too many bids. You need a robust process in place for deciding whether to bid and then for the opportunities you do pursue, ensure that you give the bid your best effort. 

We consistently find a direct correlation between the level of resource employed in preparing proposals and success rate.  In short, bids should be a collective business effort, the more effort you put in, the better the outcomes. 

Responding to bids is a group effort, and as the person responsible for the bid, you will need to effectively manage your team to deliver the best results. To achieve this, you should consider: 

Choosing the right people – do you have the support of the key people needed to write this bid? 
Check your resources – do you have access to all the information and documents you will need, are they stored centrally for easy access? 
Setting clear goals – does your team know what they have to achieve and by when? 
Managing relationships – does your team know how their work impacts their colleagues and on time submission? 
Keeping everyone engaged – you may be keeping them informed, but are you doing it in a way that keeps them motivated and engaged? 
Tracking multiple projects – have you delegated responsibilities or utilised some form of bid management software to track progress?  
 
If you can answer these questions with a positive yes, you’ll be set-up well for tackling your submissions. If you are feeling swamped, it could be because you have taken on too much and your organisation needs to look more closely at how they are resourcing bids. If it’s because you are struggling to track the progress of multiple bids from start to finish, you need a system to support you – and I would strongly recommend Opportunity Manager. 

Opportunity Manager is available to all Tenders Direct subscribers, and is an incredibly simple yet efficient bid management tool. It’s designed to bring all of your notices into a single, customisable pipeline view – allowing you to check the status of all your bids at a glance, schedule tasks and reminders and centralise all of your bid documents. If this sounds like something you need, you can request a free demo of Opportunity Manager.


In my next post, I will cover the issues associated with not creating a proper pricing strategy.

In the meantime, if you’re looking for specific help with your bid, please get in touch. Every week I help clients with their tendering, from bid writing to leading on bid responses. Use the details below to view the range of services we offer or to contact me directly. 

Tel: 07384818704
E-mail: andrew.watson@proactis.com  
Web: View our training and consultancy services 


Other posts in the Top 5 Bid Writing mistakes series:
1 – Failing to prepare and preparing to fail
3 – Not knowing how your pricing fits into your strategy
4 – Too little, too late
5 – Overlooking key details

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