Are you having trouble understanding what an RFP is, or getting a grasp of how to create one? Or are you creating very detailed RFPs and scratching your head as to why vendors are not responding to them?
If so, you may read below or view the SlideShare below to understand what an RFP is, why some vendors may not be responding to your RFPs, and how to improve your RFPs to get a better response from your vendors.
Click here to view this SlideShare and others like it.
Unfortunately, a LOT of associations, particularly smaller associations or self managed associations, struggle with getting vendors to respond to their RFP's. Why is this the case?
Well, if you create a really complex RFP for a fairly straight forward job which will generate less than $10,000 in revenue for a vendor - the vendor may not want to invest the time necessary to prepare a response to the RFP because:
- They may feel like they don't have a fair shot and were only offered a chance to bid to fill out the need for a third bid required by the board.
- It might take too many hours, effectively offsetting any potential profit.
- The economy has picked up and they want to deal with customers that they deem more reasonable.
I am NOT saying RFP's are bad. RFP's are essential for large, complex projects with detailed specifications and large budgets - $100,000+. However, I have seen many situations where associations lose sight of the scale of the job they are bidding and the burden they may be placing on vendors to respond.
Three Key points to get the best responses from prospective vendors and contractors:
- Make your request for bid or RFP EASY to respond to. I am not saying to put your project at risk, but be mindful that you may turn off a vendor with TMI (too much information).
- Effective procurement is 1/2 sales and 1/2 purchasing. Don't forget to make your project sound like something a vendor would WANT to do.
- Do your homework. Get to know the vendors in advance. Discuss the project with them to gauge their interest and let them know they are going to be asked to bid in advance.
If you have a good management company, you should not have problems getting bids. Although your job may be small, the potential to earn more business from the management company should help with vendor responses.
