What is my chance of winning a tender?
What is my chance of winning a tender? This question gets ask many times. The problem is that there is no straight forward answer. People expect us to say “your chances are 50% or 60%” or whatever the case might be. But the real answer is much more complex than a simple percentage.
Let’s start by looking at briefing sessions and/or site meeting attendance. We have been to many briefing sessions/site meetings where the average attendance was more than 300 businesses at a time. And there have been occasions where there were as little as 3 to 5 businesses attending. Then there are briefing sessions/site meetings that have anything from 2000 to 8000 attendees! The greater the number of businesses attending the briefing sessions, the less your chance is of winning that tender. In our experience only 50% of businesses that attended the briefing sessions will eventually respond to that tender.
Another factor that will either count in your favour or against you is the type of goods or services that you render. For example, if you are in the cleaning industry, your chances of winning a cleaning tender is going to be much less than a business which is the only supplier of pharmaceutical products in the pharmaceutical industry. The fact is – the more scarce or unique your product is, the better your chances are in winning a tender.
Many business owners think that because their business has a Level one B-BBEE Score that they will have the best chance in winning a tender. A Level one B-BBEE Score is very good but there are many businesses with the same B-BBEE Score. In the end the price of the goods or services are going to determine which business will win the tender.
Adding to the confusion is the fact that the rules (Procurement Regulations) keep on changing. We are currently in a phase where Draft Regulations are up for comment. Once these Regulations are accepted the tender landscape is going to change significantly. Your chances of winning a tender will then be dependent on many other factors plus those factors mentioned above.
To ensure that your tender response has the best chance of winning you must ensure that it is first of all 100% compliant. Furthermore, make sure that you pass the functionality test. If your tender response makes it through to the final phase of evaluating then your B-BBEE Score and Price will determine if you are going to win or not. Ensure that your price is right – that way your chance of winning a tender will improve.
If you attend our “How-to-Tender” workshop, you can learn all about this and much more.Visit www.how2tender.com to find out more.
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