There are better uses of your time than bidding for business with an organisation that is looking for the ‘lowest price.’
Keeping current customers happy is far smarter than chasing after other people’s customers. The AICPA states, attracting a new customer is eleven times more costly than keeping an existing one. Therefore, by investing your efforts into your existing customer relationships, you are making eleven times better use of your marketing program.
When you win the business, all you have won is a customer who has clearly stated that price is the only consideration, and that you will receive no loyalty. So, the customer has articulated emphatically that they switch suppliers to obtain a lower price.
The very next problem is that new customers could possibly use the lower price as a benchmark!
Just a few of the reasons why I never recommend you tender for business! Other than that, I don’t feel strongly about it.
Improving Organisational Performance
Providing Strategy Consulting & Mentoring