The Importance of Relationships When Tendering

In its simplest terms, tendering is a formalised process for buying and selling. Everyone knows how much a good business relationship can help improve your chances of success when selling. But due to the formality of tenders, it can be difficult to even talk to someone – let alone build any decent relationships.

Pre Tender Meetings (Tender Briefing Meetings) can be used to develop relationships during the tendering process. However, it should be your aim to start building relationships with your prospect well in advance of the tendering process.

Pre Tendering Relationships

Generally when selling higher value or more complex goods or services, you start trying to develop a relationship as part of the sales process; ideally you will have built a relationship before you try to make the sale. The reasons for this include:

  • Building trust
  • Understanding your prospect’s needs and problems
  • Your prospect gets to know your organisation’s benefits

Tenders are generally used for higher value contracts and so the same benefits apply to tendering. Your relationship may also be able to influence the tendering process i.e. help the prospect in deciding what specification to tender for.

It has been said that if you can build a good business relationship prior to tender, in whatever way, it will increase your chance of winning the tender by up to 50% – if you have a good relationship you are already way ahead of the competition.

This relationship should be targeted to commence no less than 6 months prior to the bid coming out. This then gives the opportunity to start a dialogue. You can maintain this by communicating the odd news snippet or explaining any new company initiatives; getting the tendering organisation involved in your business leading up to the tender date.

If you leave it until the bid is about to come out, many will avoid meetings and phone calls as they mustn’t be seen to be compromising their  impartiality.

TIP: It is best to concentrate your efforts on the budget holder not the buyer. Procurement officers are often busy and focussed on their current projects, whereas the budget holder will have a vested interest in improving their department.

So, once you have identified your list of prospects and understood their tendering timescales, try and develop a good business relation before the tendering process starts.

If you have any other thoughts on this, please add your comments below.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top