Teacher’s Pet: How to spot if a buyer knows the supplier they want, before you bid

I know, it’s frustrating. You receive a tender document or have the opportunity to bid for some work, but you’re convinced the client’s procurement team already know the supplier they really want.

So what do you do?

Rather than letting the red mist take hold, let’s examine what’s really happening behind the scenes – from my own experience in procurement – so that you can learn when it’s worth competing with the Teacher’s Pet.

1. Challenge yourself

Firstly, remember to challenge your own perceptions. Procurement teams are always looking for more capable suppliers in order to create an increasingly competitive environment. They want to save money and/or create value for their businesses, and more suppliers usually mean a better chance of doing this.

In order to check if you’ve jumped the gun, it’s worth evaluating what you really know, versus perception. For example:

• Is a contract already signed or an existing agreement in place?
• Has this supplier delivered part of the work or invested significant time in the project before the procurement phase?
• Do the buyer’s technical team have a heavy bias for this supplier’s product/service due to existing systems/processes/standards?
• Have you actually been told the buyer has a preferred supplier?

 
If the answer to one or more of the above questions is yes, perhaps it’s time to draft a polite email declining the opportunity. On the other hand, if it’s just a hunch, it’s definitely worth considering some other factors too.

2. Examine buyer behaviour

Procurement people have a tendency to give some clear signals about their intentions without saying anything.

Look out for these clues that another supplier already has the contract in the bag:

• The term ‘quote’ or ‘RFQ’ (Request for Quotation) is used for what appears to be a complex procurement exercise – in other words, only cost, not quality or other factors are being considered
• Another supplier has written the specification or service requirements
• The procurement exercise has a suspiciously short timeline
• The incumbent supplier has retained the contract for a significant period of time and the procurement team hasn’t made a point of reassuring other bidders that this won’t be an issue

3. Just ask!

 
Okay, so I’m not talking about MI5-style interrogation of the client’s procurement or technical teams here, but putting people on the spot and asking them directly can be very telling.

Try to ask questions that offer you insight, without being too direct or demanding. For example, something like “What are the key objectives for this process/tender/exercise?” is likely to work better than “Has another supplier already been chosen?”

That said, don’t be afraid to be more direct if you feel it’s appropriate - “How can you reassure us we’ve got a fair chance of winning the contract?"  If the buyer isn’t willing to properly address your concerns, there’s a good chance it’s because they already know the outcome they want – and you’re not it.

When you ask difficult and direct questions, look out for long pauses, high-speed waffling or erratic topic changes. These are all telltale signs the buyer hasn’t got an answer you'd like to hear and that another supplier may be the clear favourite.

4. Public vs. Private Sector

In the public sector, buyers never pre-select a supplier… or at least, in most cases, they shouldn’t (due to the rules set out in the Public Contracts Regulations).  On the other hand, the private sector has no specific guidelines on this sort of thing and as such, the chances of a Teacher’s Pet being selected in advance are much higher.

Although I get fairly frustrated with the statement ‘if the buyer doesn’t know you, don’t bid’ (which I’ll explain in detail in a future post), this does provide a fairly effective ‘quick and dirty’ sense check on whether to bid or not, that works for the public or private sector, especially if you have other information to support this assumption.

5. Use your insights to make an informed decision

Having taken the time to do some digging and challenge your assumptions, the most important step is taking action.

It’s far too easy to allow pressure to win contracts and grow your business cloud good judgement and logic, or to convince yourself to just bid anyway – but don't. Don't just go with your gut. Don’t fire a half-baked proposal at the buyer.

Take some time to think. Ask some questions. And make an informed decision on whether to bid based on good logic and the information you’ve found.

Although these points only represent a light touch bid/no-bid decision process, the time taken to consider them properly will result in higher success rates and improved ROI for your business.

Finally, if you’re not going to bid, remember to send a polite note to the buyer and give them a reason for your decision – this way you keep the door open for further opportunities.

Lloyd is the Founder of SME Bidder, experts in providing small and medium-sized businesses (SMEs) with bid and tender support.