The diminishing effects of RFP participation

The RFP or requisition for proposal is touted and favored by government agencies and private enterprise as an effective tool to promote competitive vendor participation and outreach, while achieving cost control in product and service acquisitions. In practice, the RFP issuer drafts and sets strict procedural guidelines and product specifications, striving for uniformity of proposals giving the perceived appearance of a complete and fair evaluation. The issuer is thereby assigning equal value and status to all participant vendors, making price the distinguishing and decisive factor.

In this process, the participant vendors are deprived of a forum to assert brand distinction and employ their marketing plan. In fact, the process at times causes the vendor to deviate from or abandon their marketing model and pricing structure. Relegating the long term customer relationship building process and additional business to the a continual repetition, as well noted in an article posted in an INC publication entitled, "Death by RFP" by John Warrillow. http://m.inc.com/?incid=47072

In result, well established brands tend to avoid RFP participation, leaving the competing field to brands that are undefined, unestablished and desperate for sales. The originally intended mission of using the RFP to foster inclusion, outreach, access and competitive participation in quest of value, falls short.

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, SF Business Insight Examiner

Rene Bazan, a married father of three grown children. Has lived in the Bay area since 1969. Self employed since 1978 in the information service industry. Participated in numerous start-ups and established strong corporate relationships.

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