“Lack of healthy competition leads to second-rate service” (K. Williams)
Today in business the term “tender” is very often used. It is generally accepted that commercial tenders are tenders. The term appeared thanks to the English word tender – which means “offer”. In commercial practice, tenders are called tenders of various directions, tenders, purchases, auctions, but there is an obvious difference between an auction and a tender, and each concept has distinctive features. Let’s consider what a commercial tender is.
Commercial tenders: definition and classification
Tender is a civilized struggle within the framework of competition, the purpose of which is the ability to supply certain products (services) on the set conditions to a specific customer.
Depending on the purpose, tenders are divided into commercial and state, can be organized for the sale or purchase of goods. Unlike auctions, tenders have a number of specific features. During the auction, all participants have access to the offers and pricing policies of competitors, and the terms of transactions may vary depending on the situation. Whereas in tenders information is closed to competitors, and the terms of the auction are not subject to changes. When holding tenders, information about the offer is available only to the customer and the tender commission, all the nuances and terms of the transaction are set to the customer individually.
Conducting commercial and government tenders is similar in approach and principles. What is commercial procurement? Unlike public procurement, the implementation of which is strictly regulated by law, private companies conduct auctions according to their own rules and conditions, with an orientation towards internal documentation. Since commercial organizations set specific conditions for participation in the tender, all participants in the event must strictly adhere to them when preparing their own proposals planned for these tenders.
Basically, commercial tenders are tenders intended for commercial structures of any type. They have the following classification:
- Open – all interested companies participate in the auction.
- Closed – the customer selects and invites companies to participate in the market segment of interest.
- One-stage – trades are held in one round, covering the selection of participants. The winner is determined immediately, but there is no negotiation between the parties.
- In two stages – trades are designed for complex, voluminous transactions. At the first stage of the process, the customer draws up technical specifications for the participation of the parties, negotiates. The second stage includes consideration of all proposals, choosing the best option and determining the winner.
- With limited participation – the event is strictly by invitation, the subject of the tender has a highly specialized purpose.
- By preliminary selection – all companies that have submitted applications are selected at the stage of organization. Such tough conditions for bidding are put forward in case they need to be held in a short time due to unforeseen circumstances, emergency. This type of tenders is held annually, commercial structures can participate in the event, which are able to carry out the organizer’s task in a short time without an advance payment.
- Commercial tender with a single supplier – is carried out if all participants were excluded by the customer or independently canceled the deal.
- Request for specific quotations – tenders are held for the implementation of serial batches of products. The winner in most cases is the participant with the lowest cost of the item. To request quotes, the customer forms a standard application. Only one application can be submitted from one customer.
Difficult art: how to participate in tenders
In modern business, tenders are in demand and are in demand in any field of activity. During the bidding process, the company gets the opportunity to conclude profitable deals on the basis of transparent and free competition. The organizer of the tender satisfies its request by purchasing (selling) products at the best price. Participants have the opportunity to take part in open competition on equal terms.
How to participate in commercial tenders? The standard rules of the event allow participation in tenders of both domestic commercial structures and foreign ones. The main condition for participation is the provision of a full package of documents (in the language of the country where the event is held).
Each participant must know how to participate in commercial purchases and strictly follow the established rules:
- Submit a generated application in accordance with the organizer’s samples
- Comply with all the conditions of the event and strictly comply with the requirements put forward by the customer
- Adhere to the application deadlines set by the organizer
- If the participant has changed his mind and intends to withdraw the application (make adjustments), he can do this before the deadline for filing the documentation
The participating company is obliged to select an offer that meets the specifics of its activities and the terms of the tender, carefully study the rules of the tender, collect a package of documents and provide the tender commission with a secured application.
Each application of the participant must be backed up by a guarantee in order to ensure the security of the transaction … The generally accepted size of the guarantee is within 5% of the total transaction value. In large contracts, this figure can be significant, which is why companies often resort to bank guarantees or tender loans.
Participate to Win: Secrets of Effective Struggle
In the conditions of the modern economy, tendering has taken a dominant position. Technologies and sales techniques that functioned and were effective earlier are practically inactive today. Purchases of goods are not spontaneous. Customers rarely decide to purchase a product without comparing several competing offers. In most cases, large-scale purchases are carried out in a tender format, the basis of which are certain conditions and rules.
How to participate in tenders and win? About effective methods developed over long years of practice, based on our own experience of participating in hundreds of tenders, says Alexander Ivanov in his book “Tenders: the Science of Winning. The Behavior Strategy of the Best B2B Sellers ”. The knowledge gained in the process of reading helps to reveal the essence of the fundamental techniques, by owning which you can win in any trade. The author adheres to the position that it is the knowledge of the laws of fighting in tenders, and not intuitive motives that will help a professional to win.
Tenders are subject to strict rules, knowing which you can successfully participate in tenders and apply them in any direction of business. From the book you will learn about the methods for identifying strong competitors, about the actions, without the use of which it is impossible to win in any competition, and you can easily predict the behavior of a competitor in the struggle.
You have a unique chance to gain professional skills and prepare to participate in the auction any direction from business coach Alexander Ivanov. The author is a specialist in the field of tendering and draws on his own experience of participating in the tender struggle for 16 years.