When Procurement issues a Request For Proposal (RFP, aka tender), it is not uncommon that the requirements have already been influenced by one or more suppliers. And that’s a problem if you are not one of those suppliers. It’s a problem because it adversely affects your odds of winning the RFP. Once the RFP has been issued there are very few, or no, opportunities for influencing the requirements. So, what can you do to influence the Economic Buyer and other Decision Making Unit members before that RFP hits the street?
Flying under the radar
One way of avoiding the Procurement department initially, is to pitch something inexpensive, yet valuable, to the Economic Buyer. Something that’s likely to lead to an upsell – a feasibility study leading to a full-scale project, for example.
The reason you can use that approach to avoid interference from Procurement is simple. Procurement can’t be everywhere at the same time. They have to prioritise. And many of their priorities are around money. By that I mean they focus on achieving lower Total Cost of Ownership, better Value for Money and more Tangible Business Value.
So, they generally don’t get directly involved in procuring goods and services with a small price tag. It’s simply not worth their time, because of the very limited potential to achieve meaningful cost and value goals.
Becoming a favoured option
Procurement will, of course, get involved once you go for the upsell. But by then you will hopefully have influenced the Economic Buyer and key DMU members enough for them to have a preference for your solution – for them to trust that you will be able to do an excellent job for them. That preference for your solution will, in turn, influence the RFP requirements, whether that’s the stakeholders’ intensions or not.
I am assuming here that Procurement will run an RFP. That’s not for certain, though. Regardless, if the price tag is high, Procurement will get involved in a substantial way. But you will be in a stronger negotiating position, as you will already have earned the trust and support of the Economic Buyer and other stakeholders.
Influencing early, by initially selling something inexpensive, is just one way of preparing for a successful outcome when negotiating with Procurement. Have a look at my, 10 Insider Tips to Put You Ahead Of The Game When Negotiating With Procurement, for more ideas.
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