In this serie of articles, we will share with you valuable strategies to help you optimize your bids and secure your best chances to Win the Bidding War!
Strategy #2 – Reducing Subcontractor and Supplier Costs
When selecting a subcontractor or supplier, the price is a key factor that can serve as the criterion to compare bidders. Therefore, each detail in your subcontractors’ rates and bid contents should be considered.
Sending Invitations and Cumulating Data
By sending a maximum of invitations to bid and collecting data on prices previously obtained from your sub-contractors and suppliers, you will have a better idea of market prices and each subcontractor’s and supplier’s pricing positioning. This will help you to classify and select them based on the type of project for which you are seeking tenders.
If you are hesitant when selecting a subcontractor or supplier, receiving a larger number of bids and gaining simple, fast access to data on previous bids will help you to compare them and make the best informed decision. It is strongly recommended to look for new subcontractors on an ongoing basis. Expanding your network of subcontractors will help you to validate your current relationships. Some long-standing subcontractors tend to take business relationships for granted and subtly increase their prices.
However, new subcontractors often agree to reduce their prices to prove their worth. They know that any mistake would be unforgivable and would put an end to a new business opportunity. However, the quality of delivery might even be better than with older relationships.
To get the complete strategy guide for free, please click here.