A World Without RFPs...we can only hope

A World Without A World Without RFPs...RFPs...

we can only hopewe can only hope#NoRFPs#NoRFPs

Courtney PembertonCourtney Pemberton@cpembyrun@cpembyrun

Todd NienkerkTodd Nienkerk@toddross@toddross

Why we are talking about Why we are talking about RFPs?RFPs?

Why do customers make Why do customers make RFPs?RFPs?

•Market Price & Leverage

•Qualify New Vendors

•Free Consulting

•Standard Procedure

Market Price & LeverageMarket Price & Leverage

Qualify New VendorsQualify New Vendors

Free ConsultingFree Consulting

Standard ProcedureStandard Procedure

Why do vendors respond?Why do vendors respond?

•Vendors can be naive

Customers’ reasons

Vendors’ reasons

Are RFPs a waste of time?Are RFPs a waste of time?

SchipulSchipul

•37-person company

•Web design and development, SEM and Social Media, Web Marketing

•Dedicated Teams – Sales, Programming, Creative, Technical, Support, Operations

•High Volume: 150 projects/year

•Typical Timeline of Projects: minimum 3-6 month commitment

•Average project budget: $10,000 - $20,000 budget

SchipulSchipul

•10-20 hours per RFP response

•Over 60% of business comes from current clients or referrals

Four KitchensFour Kitchens

•12-person company

•Web design and development (no marketing)

•No dedicated sales team

•Low Volume: 5 projects/year

•Typical Timeline of Projects: minimum 6-month commitment; usually 2 years

•Average project budget: $250,000 budget

Four KitchensFour Kitchens

•30-40 hours per RFP response

•85% of work over the past 5 years involved no RFPs

So…are RFPs good for So…are RFPs good for business?business?

We donWe don’’t think so.t think so.

Do an exercise to figure it Do an exercise to figure it out…out…

•Grab some post-its!

•Ask yourself some questions… What % of RFP-driven proposals so you

win? What % of work doesn’t involve an RFP? How much revenue are you losing per

RFP response?

Other downsides to RFPsOther downsides to RFPs

•Free Work?

•Vendor Creativity?

•Opportunity to Build Trust?

Free Work? No way.Free Work? No way.

Vendor Creativity? Gone.Vendor Creativity? Gone.

Opportunity to build trust? Not a Opportunity to build trust? Not a chance.chance.

““Be cost efficient. Or be Be cost efficient. Or be innovative. Just make innovative. Just make

sure you stand out sure you stand out from the crowdfrom the crowd””

-Ken Carty-Ken CartyVP & Chief Procurement Officer, Coca-VP & Chief Procurement Officer, Coca-

ColaCola

What are your options?What are your options?

Establish customer/vendor relationship

In-person pitches

Ask the right questionsOpen bid?Is it a good fit?

Take a stance

Dear Customer…help us, help Dear Customer…help us, help you!you!

Tell us your budget.

Dear Customer…help us, help Dear Customer…help us, help you!you!

Beware of low bids.

Dear Customer…help us, help Dear Customer…help us, help you!you!

Remember that you are establishing a relationship.

Your vendors want a relationship, too.

Dear Customer…help us, help Dear Customer…help us, help you!you!

Don’t let bad vendor experiences jade you.

Dear Customer…help us, help Dear Customer…help us, help you!you!

Don’t ask for free work.

Dear Customer…help us, help Dear Customer…help us, help you!you!

Pre-qualify vendors.

Don’t open bid.

Hyper-communicate.

Dear Customer…help us, help Dear Customer…help us, help you!you!

Tell us why you didn’t choose us.

Questions?Questions?

Thank You!Thank You!