Most businesses fail with their first attempt at a formal tender. They needn’t, but they do. This prompts some to give up: ‘I tried it once, didn’t get anywhere, it’s a waste of time.’
This is a shame. Formal tenders are the route to larger contracts, repeat business, and the opportunity to earn more revenue while having fewer clients to manage.
One reason that businesses give up is that they fail to grasp the reasons for their failure. They console themselves with the notion that the result was a foregone conclusion, or that the winning bidder came in with a ‘giveaway’ price. This is rarely the reality.
Here are two of the main reasons that first attempt tenders fail: