What sort of value proposition are they looking for?
But more than that it can help you to design the value proposition aligned to the sophistication of the prospect. If you are pitching to Peter Price, and your 'default' value proposition is a premium offering which offers superior value, it may be that your offer is mis-aligned to the prospect's (perceived) needs. You may be broadcasting on wavelengths that Peter isn't receiving on. IF you have a choice of offering, it may be better to strip out some value and design a bid around what Peter is looking for. Or maybe not to bid at all, if bidding with a 'cut-down' offer might damage your brand.
What follows are seven questions, each of which is scaled from 1 to 10. The more sophisticated the prospect, the higher the score. You can score the prospect by reading the three descriptions (helpfully colour-coded bronze, silver and gold) and dragging the slider to the left or the right as appropriate. The score you have selected appears on the right of the page. When you have done, the tool summarises your answers with a summary of what sort of prospect you are dealing with.
And it also suggests what sort of value proposition is likely to be more successful. Have fun!
The time to respond is normal. There is a summary of what is needed in the response. There are multiple 'hoops' to jump through to ensure a compliant bid.
The time to respond is generous. There is a checklist of what is needed in the response. The bid package seeks to motivate a response (rather than demotivate)
The specification looks like it has been copied & pasted and raises questions that need answering before we can put in a compliant bid
The specification aligns to the prospect's needs and is easy to understand. It indicates that the prospect understands the category
There are 'standard' knockout criteria most of which relate directly to the requirement and/or bid administration
The mandatories are directly related to the need and tender administration and are normal for this sector.
The non-price criteria are average for this category and sector. Non-price benefits appear to be valued.
The non-price criteria are comprehensive and relevant. Value is defined in terms of price and non-price benefits.
Price and non-price criteria appear to be equally important
Price is one part of the evaluation, but there are other cost factors, too and non-price criteria are also weighted
The proposed Ts & Cs are standard for this category and this sector
The Ts & Cs suggest that the prospect has designed a contract to manage performance not (just) to allocate risk
Prior behaviour or other intel suggests that this prospect is representative of this category and/or sector.
Prior behaviour or other intel suggests that this prospect is more sophisticated than peers in this sector.
✓ must meet the mandatory requirements
✓ can include premium pricing PROVIDED
✓ the non-price benefits provably justify the price premium
If there are several bids which meet the minimum technical standards, Valerie will shortlist the two (or three) bids that offer most benefits for the dollar. Remember that the non-price benefits that you offer must translate into points in the non-price evaluation framework.
✓ above the minimum acceptable standard
✓ within the acceptable benefit range
✓ within the prospect's budget expectations
If two or more bids have about the same cost, the bids with the higher non-price benefit score will be more likely to be shortlisted. Bids above the 'value line' will always be preferred over bids below the value line. If you have a premium offering, or a 'challenger' strategy, then a value proposition in the 'sweet spot' is a great idea.
You must be able to prove the benefits that you claim. Make your proposals a puffery-free zone!
✓ Must meet the mandatory requirements
✓ Must be within budget AND
✓ The non-price benefits must align with the evaluation framework
If there are several bids which meet the minimum technical standards, Peter will shortlist the two (or three) bids that offer lowest cost. Remember that the non-price benefits that you offer must translate into points in the non-price evaluation framework.
✓ above the minimum acceptable standard
✓ within the acceptable benefit range
✓ within the prospect's budget expectations
If two or more bids have about the same cost, the bids with the higher non-price benefit score will be more likely to be shortlisted. Bids above the 'value line' will always be preferred over bids below the value line. If you have a 'value' or low-cost offering, then a value proposition in the 'sweet spot' is a great idea.
You must be able to prove the benefits that you claim. Make your proposals a puffery-free zone!
✓ must meet the mandatory requirements
✓ must align with whatever evaluation framework the prospect has shared
✓ may be a 'shot in the dark'
You should rate this as a lower chance of success in your pipeline, as it is not clear what the prospect is looking for. If there are other opportunities, maybe focus on them. What does it say about your sales processes that we don't know what the prospect is looking for?
✓ above the minimum acceptable standard
✓ within the acceptable benefit range
✓ within the prospect's budget expectations
If two or more bids have about the same cost, the bids with the higher non-price benefit score will be more likely to be shortlisted. Bids above the 'value line' will always be preferred over bids below the value line. If you don't have an insight into what the prospect is looking for, then it will be harder to develop a value proposition in the 'sweet spot'.
Remember that you must be able to prove the benefits that you claim. Make your proposals a puffery-free zone!