Many sellers feel victimized, and thus fall victim to, The Bid Process. They think, “I can’t really sell my guy because he buys off a list; the lowest bidder gets the order. I try to work with him, but he tells me to quote my best price the first time and if I’ve got the low number, I get the order.”
And if you win, you think, “I got the order! Hooray for me, I’m the dumbest!”
This is a victim mentality – and if it’s true, which it’s not, – we can have a $10/hour employee do our job. There are strategies you can do to bust the bid process and make it work for you.
Number One Bid Busting Solution
Prospect for accounts who will buy from us as promotional partners, not people who want us to be their Bid-B’s. But if you must bid, here are some things to keep in mind.
De-commoditizing the Bid/RFQ/Inquiry
1. Ask about desired outcome. What exactly is the customer trying to accomplish? If you know the desired end result, you submit a bid solution that is better, more customized (not commoditized) to your customer’s needs and most importantly to the talents of your company. You should re-write the bid customized to your strengths vis-à-vis our customer’s desired outcome.
2. Work the bid collector. This is neither my style nor my favorite, but it works and most master sellers have an arrow or two of this strategy in their quiver. Being nice to the person who collects the bids – whether they are the buyer or not – pays dividends. Asking for guidance and friendly conversation will give clues to how the bids are placed. Often information considered unfair is given.
3. Work the bid. This is a heavy part of strategy number one. When given a bid you must query every aspect – price, delivery, availability, penalties for late shipment. You are looking for the “Oh we hadn’t thought of that” sort of things. One small piece of information can make a huge difference. And many nuggets of information will be discovered going through the bid thoroughly. Don’t skim the bid. Everything is important, but you need to determine what is number one and what are the other top customer needs.
How to Present the Bid – Make It an Event
The set up conversation: “John, I will have the bid ready tomorrow. Will Pete and Mike be able to make the presentation, if not, let’s set it for a time when all the decision makers can be present.” If all the decision makers are not present, we are submitting a bid, not selling.
Find out when. When will the order be placed?
Be the last bidder. “Are all the bids in?” is a bid-buster question. If the answer is yes, find out as much as possible about them. If the answer is no, why are we waiting?
Present a final number without specifications. If we are doing highly detailed work or there is some advantage in others seeing our bid, this is a bold and effective move.
Customer: “Wow, that’s a great price, but where are the details?”
Bold Salesperson: “We stand behind our work 100%. Our designers are the best in the business. I will give you the details when you give me the order.”
This approach can be flipped by giving the specs but leaving out the price – until all decision makers are present – for example; or modified by leaving out one key element in an otherwise immaculate bid. This approach can be delivered in bolder and subtler ways, adjusting it to our style and that of our customer.
Submit an inexpensive bid with a strict time limit. Especially in ongoing business-to-business sales/relationships, this is a great bid buster. Submitting a great price with a time limit encourages our customers to work with us. If they come back after the deadline we must hold firm, even if we lose the business, or this will not work.
Speak assumptively. We must speak as if we are presenting a solution that will be implemented. (Not a Bid!)
Know the details. Especially when presenting a customized solution, if we fumble on details, the customer will return immediately to the standard bid.
Ask for the order. Speak assumptively throughout the presentation and be prepared to ask for the order many times. Letting the customer walk, (taking some more time to think it over or discuss privately) or any other option lowers your closing percentage drastically.
Many companies have moved to online bids. This approach can make it difficult to use some of these approaches. See if you can get some face time with the customer. While bids can be nerve wracking, it has become a standard part of business these days. How you approach them really impacts the outcome and your success rate.
Editor’s Note: James Olsen is the founder of Reality Sales Training. He has over forty years of sales experience having worked with Nike, North Pacific Lumber and Forest City Trading. He has worked selling lumber and forest products with a focus on sales growth, and he recently spoke to the Western Pallet Association. You can learn more of James’ sales wisdom from his books An Unfair Fight: How Winners Sell and Sellers Win, Leadership Sales and Selling Lumber: Sales Secrets of a Lumber Broker. For more information, visit www.realitysalestraining.com/ or call 503/544-3572.
