Putting together a competitive bid takes knowledge and skill. It’s a bit more complicated than just putting some numbers together and hoping for the best.
A competitive bid requires a lot of time and effort as you have to read and fully understand the plans and specifications, and accurately estimate labour, material, and equipment costs. The slightest mistake can mean the difference between submitting a winning bid and missing out on a coveted and profitable project.
Here are 6 tips that can help you submit a competitive bid:
Prepare adequately
Always familiarize yourself with the procurement process that is commonly used in the tendering industry. This will help you get the different processes and everything that is expected. You will also get to understand the requirements of the procuring entity beforehand, as well as know if the opportunity is aligned with the business goal.
Focus on the procuring entity need
If you want to submit a competitive bid, you should have the procuring entity in mind as you write your proposal. Tailor your bid to your buyer’s requirements and clearly state your skills and the products to fulfil them. This will give you higher chances of winning.
Have a differentiation factor
A competitive bid requires you to have one factor that will make you stand out from the competition when the bids are being compared. Analyze your competitors and find out what will make you stand out from them.
Set the right price
A competitive bid is one with moderate prices—don’t exaggerate or lower them too much. Exaggerating your prices will give your competitors an edge. Lowering them too much will not cover your expenses, such as transportation, materials, and external support, among others.
Always submit a well-written proposal
Have a professional-looking, well-written, and correctly formatted proposal that will give your company a good impression. Ensure all the details you provide are correct and accurate, with no spelling errors and everything is well signed before submitting.
You can ask people within or outside your organization to act as a “procuring entity” to help point out errors or areas that need to be improved before submitting your proposal. This will give you a higher chance of submitting a winning bid.
Time
As they say, “The early bird catches the worm”. Don’t wait unti the deadline to submit your document, when all of your competitors have already submitted their’s. Always submit earlier to avoid being the last on the pecking order.
Conclusion
Preparing a competitive bid is a task that requires a lot of time and attention to detail. Making a slight mistake can lead to submitting an overpriced bid that is uncompetitive or worse, an underpriced bid that can win easily but make no profit. The key to winning more bids is being able to accurately estimate all costs required to complete the job while factoring in a reasonable profit for your company.