A World Without RFPs...we can only hope

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A World Without RFPs...we can only hope

  1. 1. A World Without RFPs... <ul><li>we can only hope </li></ul><ul><li>#NoRFPs </li></ul>
  2. 2. Courtney Pemberton @cpembyrun Todd Nienkerk @toddross
  3. 3. Why we are talking about RFPs?
  4. 4. Why do customers make RFPs? <ul><li>Market Price & Leverage </li></ul><ul><li>Qualify New Vendors </li></ul><ul><li>Free Consulting </li></ul><ul><li>Standard Procedure </li></ul>
  5. 5. Market Price & Leverage
  6. 6. Qualify New Vendors
  7. 7. Free Consulting
  8. 8. Standard Procedure
  9. 9. Why do vendors respond? <ul><li>Vendors can be naive </li></ul>
  10. 10. Customers’ reasons Vendors’ reasons
  11. 11. Are RFPs a waste of time?
  12. 13. Schipul <ul><li>37-person company </li></ul><ul><li>Web design and development, SEM and Social Media, Web Marketing </li></ul><ul><li>Dedicated Teams – Sales, Programming, Creative, Technical, Support, Operations </li></ul><ul><li>High Volume : 150 projects/year </li></ul><ul><li>Typical Timeline of Projects : minimum 3-6 month commitment </li></ul><ul><li>Average project budget : $10,000 - $20,000 budget </li></ul>
  13. 14. Schipul <ul><li>10-20 hours per RFP response </li></ul><ul><li>Over 60% of business comes from current clients or referrals </li></ul>
  14. 16. Four Kitchens <ul><li>12-person company </li></ul><ul><li>Web design and development (no marketing) </li></ul><ul><li>No dedicated sales team </li></ul><ul><li>Low Volume : 5 projects/year </li></ul><ul><li>Typical Timeline of Projects : minimum 6-month commitment; usually 2 years </li></ul><ul><li>Average project budget : $250,000 budget </li></ul>
  15. 17. Four Kitchens <ul><li>30-40 hours per RFP response </li></ul><ul><li>85% of work over the past 5 years involved no RFPs </li></ul>
  16. 18. So…are RFPs good for business?
  17. 19. We don ’t think so.
  18. 20. Do an exercise to figure it out… <ul><li>Grab some post-its! </li></ul><ul><li>Ask yourself some questions… </li></ul><ul><ul><li>What % of RFP-driven proposals so you win? </li></ul></ul><ul><ul><li>What % of work doesn’t involve an RFP? </li></ul></ul><ul><ul><li>How much revenue are you losing per RFP response? </li></ul></ul>
  19. 21. Other downsides to RFPs <ul><li>Free Work? </li></ul><ul><li>Vendor Creativity? </li></ul><ul><li>Opportunity to Build Trust? </li></ul>
  20. 22. Free Work? No way.
  21. 23. Vendor Creativity? Gone.
  22. 24. Opportunity to build trust? Not a chance.
  23. 25. “ Be cost efficient. Or be innovative. Just make sure you stand out from the crowd” -Ken Carty VP & Chief Procurement Officer, Coca-Cola
  24. 26. What are your options? <ul><li>Establish customer/vendor relationship </li></ul><ul><li>In-person pitches </li></ul><ul><li>Ask the right questions </li></ul><ul><ul><li>Open bid? </li></ul></ul><ul><ul><li>Is it a good fit? </li></ul></ul><ul><li>Take a stance </li></ul>
  25. 27. Dear Customer…help us, help you! Tell us your budget.
  26. 28. Dear Customer…help us, help you! Beware of low bids.
  27. 29. Dear Customer…help us, help you! Remember that you are establishing a relationship. Your vendors want a relationship, too.
  28. 30. Dear Customer…help us, help you! Don’t let bad vendor experiences jade you.
  29. 31. Dear Customer…help us, help you! Don’t ask for free work.
  30. 32. Dear Customer…help us, help you! Pre-qualify vendors. Don’t open bid. Hyper-communicate.
  31. 33. Dear Customer…help us, help you! Tell us why you didn’t choose us.
  32. 34. Questions?
  33. 35. Thank You!

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