In the competitive landscape of business, securing tenders can be a crucial factor for growth and success.
However, not every tender will result in a positive outcome.
This is common, particularly if there were a lot of bidders (four or more) submitting responses including your organisation.
Receiving news of an unsuccessful tender can be disheartening, but it is essential to remember that setbacks are a natural part of the journey.
Instead of dwelling on disappointment, it’s important to focus on what comes next.
Let’s look at the constructive steps to take after an unsuccessful tender, turning it into an opportunity for growth and improvement.
Reflect and analyse your unsuccessful tender
The first step after an unsuccessful tender is to reflect on the entire process. Conduct a thorough analysis of your submission, examining areas that may have contributed to the outcome. Review the criteria and specifications outlined in the tender, comparing them with your proposal to identify any shortcomings. By pinpointing weaknesses or gaps, you can learn from the experience and make necessary improvements for future opportunities.
Seek feedback from the tendering authority
Don’t hesitate to reach out to the tendering authority to request feedback on your submission by attending the formal tender debriefs.
Tender debriefs can help your organisation narrow down why you lost. However, be prepared for your client to only talk in general terms, you’ll have to ask very specific questions of them to get the information you need.
Constructive feedback can provide valuable insights into the decision-making process and highlight areas that need improvement. Understanding the reasons behind your unsuccessful bid can help you address specific concerns and refine your approach in future tenders.
Evaluate your competitors
Take a close look at your competitors. Look for press releases, or use your back-channels such as subcontractors who work with you as well as your suppliers and other industry contacts.
Examine the strengths and strategies employed by the successful competitor. This analysis can provide valuable insights into industry best practices, pricing structures, or innovative approaches. Understanding your competition and their successful tactics can help you refine your own strategies and make your future tenders more competitive.
If you found the price was a lot lower than yours
If the price was a lot lower than yours, either one of two things has happened:
- the bidder has deliberately underbid the market on price because they were desperate
for the work/contract; If this is the reason, there’s nothing you can do about that.
- the bidder had – or found – a significant price advantage: they could have achieved this through a number of reasons such as using exclusive innovative technology, or perhaps they were already on-site and didn’t have to charge the Client any mobilisation and/or transition costs.
If this is the reason, you will definitely want to learn from that. Specifically, do a more thorough competitive analysis before you submit your pricing for the next tender.
If the winning price was the same as yours or higher
If the winning price was the same as yours or higher, then the problem is normally that your
organisation and/or solution was viewed by your Client’s evaluators as riskier than other bidders.
This could be a lack of successful track-record for your organisation or for the solution you
proposed.
When this happens, client evaluators add a ‘risk premium’ to your pricing as a way of
representing that risk in their price analysis of all bidders. This ‘risk premium’ can easily be
significant eg. 3-5% more expensive. And that’s the ball game.
What to do about price risk premium?
Again, this is quite common, and thankfully there’s a reasonably straight forward way to address this: win smaller jobs and build your successful track-record.
And in your next tender, make sure you prove your successful track-record through customer testimonials, and project/case studies.
Reassess Your Value Proposition
An unsuccessful tender is an opportunity to re-evaluate and enhance your value proposition. Identify your unique selling points, strengths, and differentiators. Consider how you can effectively communicate these advantages in your next tender. By fine-tuning your value proposition, you can increase your chances of standing out among other contenders and capturing the attention of potential clients.
Enhance your tender proposal
Revise and strengthen your proposal based on the feedback received and lessons learned. Improve the clarity and organisation of your documentation, ensuring that your proposal is compelling and aligns with the requirements of the tender. Review your pricing strategy to ensure competitiveness while maintaining profitability. Strive to present a comprehensive and persuasive case that clearly demonstrates your capability to deliver value.
Network and collaborate
An unsuccessful tender should not isolate you from the industry or potential partners. Leverage networking opportunities to build relationships with industry professionals, experts, and other businesses. Attend conferences, seminars, or trade shows related to your field, allowing you to gain valuable insights, establish connections, and explore potential collaborations. Collaborative efforts can enhance your chances of success in future tenders by combining expertise and resources.
Diversify your tender opportunities
Consider broadening your horizons by exploring alternative avenues for growth. Seek out opportunities in different industries or sectors that align with your expertise and capabilities. By diversifying your tender portfolio, you can mitigate the risks associated with relying solely on one sector or niche, and potentially discover new areas of growth.
Recovering from an unsuccessful tender requires resilience, adaptability, and a commitment to continuous improvement.
By reflecting on the process, seeking feedback, learning from competitors, and refining your strategies, you can transform setbacks into stepping stones for future success. Remember, it’s not the end of the road; rather, it’s an opportunity to learn, grow, and become a stronger contender in the competitive world of tenders.
How can Tender Evaluation help with your unsuccessful tender?
Leveraging the team at Tender Evaluation can significantly increase your chances of success. We provide a systematic and objective assessment of tender proposals based on the predetermined criteria. By utilising our process, you can ensure that your tender submission aligns with the expectations and requirements of the tendering authority.
Evaluators provide feedback on various aspects, including compliance, proof, technical capability, and overall quality. This feedback can help you identify areas for improvement and refine your proposal accordingly.
Elevate your chances of success, contact the team today here.