Subscriber Discussion

How To Tell A Prospect You Are Not Bidding?

UI
Undisclosed Integrator #1
Jan 25, 2019

Let's say you are asked to design and propose a system, and somewhere along the process, you realize this is going to be a waste of time. There is an incumbent doing other work, and another location used a different vendor for the same work. The contact is not a decision maker and is just nonchalant about the whole project, with little communication.

 

Long story short I just do not feel like spending anymore time on it. I have other stuff to do that I feel have a better chance of succeeding.

 

If the client asks where the proposal is,what do you say?

 

 

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Greg Thornbury
Jan 25, 2019
Facility Solutions Group, Inc. • IPVMU Certified

Don't wait for him to call; tell him right away that you're not the right partner for him.  No need to butter him up or anything; just be honest.  You're not the right fit for him and (obviously don't tell him this) he's not the right fit for you.

The more I do it the easier it gets.

Greg

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UI
Undisclosed Integrator #2
Jan 25, 2019

If I get the impression I'm being used for a "3 bid process," I'll often straight up ask them if that is the case, with the caveat that I can still help them (don't want to burn bridges).  I've got a pretty boilerplate proposal I send out with some really rough (and high) estimates.

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UI
Undisclosed Integrator #4
Jan 25, 2019

Pretty much this. Just have a rough temple to bid these type of jobs and make sure it is padded enough to earn a profit in the off chance you somehow get the bid. 

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Kevin White
Jan 25, 2019
IPVMU Certified

I am with Greg on this one. The key is to tell them as soon as you decide and why you made your decision. Taking a long time to make the decision or waiting for them to contact you will create a lot bitterness towards you and your company. 

You never know where your contact will be working in a year. She/he could be a decision maker at another company in a year.

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UI
Undisclosed Integrator #3
Jan 25, 2019

Call or email this person letting them know you are not the right fit for this particular project for specific reasons.  Do not ghost them until they call you.  There is zero issue with backing away from a time burner for prospects with a greater likelihood of turning into real revenue.   We've all worked at employers that encourage us to chase projects with infinitesimally small chances of occurring.  That method is a drain on resources, morale, and is costly.

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UI
Undisclosed Integrator #1
Jan 25, 2019

I don't know if we are really in a 3 bid decision.I think its really a lack of organization and no real direction on the project. They have a lot of rehab going on and are only getting to considering security after they painted.... When we did the walk through it was well propose this, propose that and we will see what gets approved. No budget, no importance, etc. They have 10-15 IP cameras and 2 analog cameras and I said just replace the 2 analogs with IP and be done. No lets save the analog cameras.

 

Just not my thing.

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JH
John Honovich
Jan 25, 2019
IPVM

My concern with sending out a high bid for a job one does not want (e.g., if they are already really busy) is that it could impact future opportunities. For example, the buyer may then remember 'High Integrator Inc.' as being unreasonable or way too expensive to ever consider in the future. Does anyone think this is a material risk?

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CK
Carl Kristoffersen
Jan 26, 2019

Yes.   With projects like this with lack of direction, I've told the contractor it may be a high bid compared to others, but the uncertainty is not something I will take a chance on.

 

UI
Undisclosed Integrator #7
Jan 28, 2019

As an end user this is definitely a risk.  I am responsible for shopping around our bids and will remember those that come in way high, way late, or just don't care to respond.  They no longer get a chance to bid.  

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UE
Undisclosed End User #8
Jan 28, 2019

I'm an end user also. We have been using the same integrator for YEARS but honestly have been trying to find a new one. I had been chatting up a new integrator and finally put them head to head on some walks together.  The 'old' integrator won the first 2 (first one not by much, the second, by a LOT.. and the 'new' integrator knowingly blew the budget so they have no one to blame but themselves). 

 

On the third project (that they walked at the same time), the 'new' integrator emailed me afterwards to tell me that they were not going to bid on it. 

 

That stumped me. I know that they thought that they were being used as a  competing bid company (the sales manager actually straight out told me that they felt that they were being used to pressure/scare the 'old' integrator to drop their pricing), but for them to spend the time to walk the project (not in their home city) baffled me. The worst thing was that I really wanted them to win it and expected them to do do.   So, I'm highly reluctant to engage them again. 

 

I get it. I used to work for an integrator. No one likes to be used for a 3rd bid. It's not fun and leaves a dirty taste in your mouth. But if you back out of it entirely you may end up shutting yourself off from future projects. So, do it at your own risk.

 

 

 

 

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U
Undisclosed #10
Jan 28, 2019

I'm no longer an integrator and am glad to no longer be in these scenarios, but something you said baffled me a bit.

You said in the beginning of your post that you "honestly have been trying to find a new one." You then go on to say that the "old" integrator won the first two, and say "first one not by much". 

If it wasn't by much, and you want a new integrator, then why did the first one win it? I can understand if the second bid happened first and the second company was WAY out of line (in terms of pricing), but if it was close, why not give the new guys a shot if you're unhappy with the old ones?

I know that as an integrator, if a client was up-front about the fact that they wanted another option, and then I was not awarded a project for being slightly more expensive -- that would have turned me off completely. I would not expect to win if I was dramatically more expensive, but if it's strictly a price-driven exercise, I would consider that indicative of why you're in the situation you're in now, i.e. "trying to find a new one."

Just something to consider. I obviously am getting the Cliff's Notes version and there could have been something else that transpired, but I ran into similar situations in a past life and never quite understood them.

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UM
Undisclosed Manufacturer #11
Jan 28, 2019

I have been in a situation where my company knew that we weren't going to bid, but still "went through the motions" (asking questions, going to the bidder's conference) and then sending a brief no-bid letter right before the due date.

Disclosing this information at the beginning would have given an advantage to a competitor (who could have raised prices and thus been more profitable). 

And while a spurned customer may say after the fact that it was really really looking forward to our bid, behavior before the bid doesn't always bear this out. If a customer suddenly becomes interested in you right when a bid comes out, and hasn't been communicating at all before the bid came out, a vendor can naturally become suspicious...

 

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UI
Undisclosed Integrator #5
Jan 28, 2019

Here is the issue IMO, I believe telling the truth in most situations is the best for everyone, in other words tell the potential customer this is not an opportunity that has a high likelihood of success based upon XYZ...  but the real issue is when doing that you typically get two responses, one is "that is too bad" but the other is the potential customer then tries to convince you it isn't a waste of time.  Their motivation is that their boss for example wants three numbers and he/she doesn't care that your time will be wasted.  So, if a salesperson makes that phone call - they might fall for this and come back and say - let's work on this!  But the underlying reasons it is a waste of time hasn't changed.  So what I try to do is call the potential customer and actually give them concrete reasons, not generalistic statements.  One of the tricks is i'll ask - how are you determining who will be awarded the project (point system etc.) and will I be able to see your final evaluation process....  If they can't or refuse to answer that question or squirm - it verifies you are wasting your time (if there is an incumbent or they have written a proprietary specification).  Never be ashamed to tell a potential customer you have better things to do, again in my opinion.

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U
Undisclosed #6
Jan 28, 2019

Tell them you are very busy with other jobs, but you would be happy to help them in this. It just requires a design fee of $1000 upfront. The design fee is applied toward the project if you win. 

If they just want a 3rd bid this puts a value on it for them. 

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UI
Undisclosed Integrator #13
Jan 31, 2019

I was contemplating using the "design fee" tactic. I am new to the game and have already been burned by two companies looking to keep their same integrator honest. Do you feel the fee works for you and also do you think it shy's a lot of people away from even trying to get a bid from you?

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JH
John Honovich
Jan 31, 2019
IPVM

#13, thanks for your first comment, a good question!

I created its own discussion to get more feedback: Integrators, How Often Have You Gotten End Users To Pay You A 'Design Fee'?

UM
Undisclosed Manufacturer #9
Jan 28, 2019

Though I'm not a consultant, I've worked with enough of them that I've seen this situation played out many times.

Those that have given you the advice to just be honest and transparent, and to ask straight up questions about the politics of the opportunity, are right on.  Sometimes customers forget you also have a business to run, and that while the yes's and no's will make you rich, the maybe's will kill you.  Done correctly, you can gracefully exit, and still be a possible vendor for future business.

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UM
Undisclosed Manufacturer #12
Jan 31, 2019

Another example is when security is part of a greater scope, where your customer themselves hasn't security the project yet, for example with a new building or infrastructure project. In that case we would give them a 'budgetary' quotation. And be totally open with them about this, including the reason being that we can turn around a fairly accurate indication very quickly. Most of the time this was perfectly acceptable and they appreciated the transparency. In fact it seemed to build more trust and collaboration. When they did need a concrete proposal, this would be the opportunity to drill down with them on more information, a F2F, site visit, target budget range, etc. If they are willing to invest a few more resources, that can give you a better idea of whether they are serious about you.

UI
Undisclosed Integrator #1
Jan 31, 2019

I think the bigger problem for me on this particular project is I went down the rabbit hole, didn't really ask the right questions to begin with such as how will vendors be chosen, who makes that decision, do you make a recommendation, etc. We met a couple times so now I feel like we both have this time invested, I would be making assumptions about the process, and if I start asking the right questions now I look incompetent. Sales is not my primary skill set but as an owner, well I have to adapt don't I.

 

But I agree, transparency and being up front is the best policy.

 

We were asked to bid on another project by an associate and after careful review, we did notify him we declined and why we declined to bid.

 

UI
Undisclosed Integrator #14
Feb 01, 2019

First, we don't do "bids" and never have. We do, however, proposals. Second, any RFP that is pre-populated already has the "fix" in and politely run the other way. Don't waste your time and lose money on a race to the bottom.

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fs
farley schapira
Mar 07, 2019

We can often tell if it is a real opportunity or just keeping the other vendor honest.  In my early days, this would frustrate me, now, we make a quick call and can usually determine if its worth our INVESTMENT bid. It is unfortunate that many purchasing departments don't evaluate a bid beyond the bottom line.  As i like to say, you are not purchasing toilet paper.  1 ply or 2.

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DL
David Lieberman
Mar 07, 2019
IPVMU Certified

I'm an end user and when an integrator decides not to bid, I appreciate the quick decision and notification. A long apology isn't necessary but I appreciate a brief explanation. I received one two months ago that was simple and courteous: "Thanks for the opportunity but we feel that this job does not fit our area of expertise and have decided not to bid on it. We hope you'll consider us for future work."  Perfect.

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Chris Peterson
Mar 15, 2019
Vector Firm

Think about the outcome of your two options:

1. Don't respond.  You'll appear to be irresponsible and unresponsive.  You won't get another opportunity with this company, and they may tell others about their impression of you.

2. Tell them you're not submitting a quote.  If you do this appropriately (like many of the suggestions above), you'll be perceived as someone who values their time, doesn't NEED work, and does the right thing.  When the other guys screw up, guess who they'll call?  

I coach my clients to use a scenario like this as an opportunity to become perceived as the expert.  "As much as I'd like to work with you, this doesn't seem to be the best fit ... and we only work on situations in which we know it's a great fit.  Hopefully we can work together in the future."

Regardless of how (although option 2 is better), get out of there.  Time is your most valuable and limited asset.  

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