When You Should NOT Respond to the RFP
Finding new business is tough work, and if you’re fortunate enough to find an opportunity that looks like a good fit for your company, of course you should respond, right? While it is tempting to always throw your name into the hat, there are a few times when it is actually better to not respond to the RFP. Let’s look at a few examples.
Unclear Project Scope
If you provide services, watch for unclear project scope when reading the RFP. For complicated service projects, this is a huge red flag, and you might end up with a project that includes a lot of scope creep. Even if you are able to clearly outline what you will or will not do as part of the project, it’s not uncommon for these RFPs to be cancelled and then re-released once they have a clearer understanding of what is needed. To avoid spending time on a proposal that will not be used, ask clear questions during the question period and be prepared to not respond if anything seems off.
Good Incumbent Relationship
Another time where it may be a good idea to not respond to the RFP is if the current incumbent has a really good relationship with the buyer. In most cases, this means that they’re releasing the RFP because it’s required and will try to tip the scales in the incumbent’s favor where possible.
It is possible to write a persuasive proposal that scores higher than the incumbent, but it can be tough to do if you haven’t already been in talks with the buyer. In the scenario where there’s a strong incumbent, it’s best to either build a relationship well before the RFP release or pass and wait until next time.
Written for Competitor
This is similar to the incumbent scenario. In some cases, one of your competitors will have already met with the buyer many times and convinced them that their solution is best. When you read the RFP, you might notice some features or processes that are specific to that competitor. If this is the case, it’s a sign that they’re hoping to award it to that competitor, and any time you spend creating a proposal will likely be wasted.
Of course, you can always review your competitor’s proposals and highlight why your solution is in fact better. It’s up to you to determine if the opportunity is priority enough to spend time responding when someone else is favored.
Lack of Resources
This is a big factor that is often overlooked when deciding to respond to RFPs. An effective proposal has strong themes throughout the content as well as specific details for what you will provide if awarded. This planning requires people to create the content, review, manage, and submit the proposal. If your team is already strapped for time, they might produce a sub-par proposal that misses key points or isn’t as compelling as it needs to be to win. In these cases, it’s often better to not respond to save both your company’s reputation and your team’s sanity.
No Clear Differentiators
As you can see from many of the past examples, knowing your competition and how to stand out is essential when creating an RFP response. Yes, pricing is important, but your actual solution and selling points are equally important. If you read through the RFP and don’t have a clear angle to beat out your top competitors, then it might be better to spend extra time on the RFP where you do.
Don’t Meet Requirements
This may seem obvious, but if you don’t meet all of the requirements, it’s best not to respond. In many cases, it may be tempting to send out a proposal and see if it sticks. Most times, however, it won’t stick, and the time you spent creating the proposal would have been better spent pursuing a new lead.
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Next Steps for RFPs
Of course, all of the above examples are general situations where responding to the RFP doesn’t make sense. There are many times where it is still the best decision to create and submit the proposal. That’s up to you to decide.
If you need help responding to an RFP or improving your proposal process, we can help.