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Train with the Sales Dodo: RFPs are a Salesperson's Kryptonite
February 13, 2008
RFPs can leave you feeling powerless. Regain your advantage before you decide to respond to your next RFP.
By Lee B. Salz
Superman, as strong he is, is paralyzed by kryptonite. It brings him to his knees despite his superhuman strength. Sales people have their own kryptonite called RFPs—the dreaded Request for Proposal. But an RFP process doesn't have to be your weakness. Superman has no choice but to fight this nemesis to survive. Sales people have choices.
For one, there is no law that says you have to respond to every RFP that crosses your desk. You have the right to say "no." Some of you are now thinking that I'm insane, but it's true.
Let me turn the tables on you for a moment. The definition of insanity is repeating the same thing over and over again, expecting a different result. If you aren't the low price provider and you have no relationship with the prospect, how can you possibly win the business? You can't and won't. Sending in countless RFP responses under these conditions will yield nothing but losses. So, who's crazy now?
A few things you should know about RFPs:
• There's a disconnect between Procurement and their customers (called users). Often times, Procurement authors the RFP and establishes the measurement criteria for evaluating the submissions. However, when you speak to the actual user, they say that the criteria developed is inconsistent with their needs. Thus, a supplier is selected for a user based on flawed criteria.
• An RFP is not necessarily a commitment to make a change in provider. Some companies require that they source the business every "x" amount of times. Ever wonder how that RFP got in your inbox? Procurement will surf the web and pick a handful of providers, to whom they will send the RFP. It helps to know that Procurement folks are measured on their ability to reduce cost to the company. Just like a salesperson's scorecard is based on achievement of their sales quota, Procurement's quota is based on cost reduction. The RFP that arrived in your inbox could very well be their attempt to put the squeeze on the current provider so they can show a 10% savings. Don't kid yourself. This happens a lot!
• RFPs are sometimes used as a managerial tactic. There is a safety net for managers when they buy through RFPs since multiple people are involved in the selection process. If the supplier fails to perform, the finger can’t just be pointed at one person. So don't believe it for a second when a prospect says their company only buys through the RFP process. No company exclusively buys this way. During your needs analysis discussions, you'll be able to get a feel for who really wants the RFP—the company or the person with whom you are meeting.
To RFP or Not to RFP?
Keeping focused on what I said before, you have choices. You could just respond to every RFP. Or, you could just chuck it in the trash. Care for a third option? What if you called the Procurement person and had a conversation that sounded like this:
Hi, I'm Lee Salz with XYZ Services. I just received your RFP in the mail and wanted to ask you a few questions so I can determine if it makes sense for us to respond. As you can imagine, we receive many RFPs and are very selective when determining to which we will respond.
With that said, what is it you need to know to decide if it makes sense to participate in this process?
1. How did they get your name for inclusion in this process?
2 Why is this RFP out now?
3. Have they definitively decided to change providers?
4. What criteria will be used to score the RFPs?
5. What are the steps of the process after the RFP is submitted?
Sure, there are a ton of other questions you could ask, but this information will best help you to determine if you have a chance at winning this account. The rule of thumb is that the less information Procurement shares, the lower the chance you have of winning.
Yes, walking away from the mega-deal is hard and painful. But is this deal real or simply a mirage? Watch any Superman movie and you will see that he overcomes his kryptonite peril. Will you overcome yours?
Editor's Note: If you are a finalist resulting from an RFP submission, send Lee Salz an e-mail and ask for his Finalist preparation tip sheet.
Lee B. Salz is President of Sales Dodo, LLC, author of Soar Despite Your Dodo Sales Manager and an online columnist for Sales & Marketing Management. Lee is available for keynote speaking, business consulting and sales training. He can be reached via e-mail at lsalz@salesdodo.com, his website at www.salesdodo.com or by phone at 763.416.4321.
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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