SMEs often wonder how to maximize their chances of success when responding to calls for tender from the private sector. What strategies work? Point with Alain Wolgensinger, specialist in commercial performance optimization.
Take the test and you will be edified: if you type the expression “calls for tenders” on the Internet, almost all the answers will concern public calls for tenders. However, the weight of the private sector in the economy exceeds that of the public sector. Hence the whole point of sharpening your response strategy to private calls for tenders, after having perhaps done the same in the field of public order.
First observation: without direct contact, calls for tenders from the private sector are a pipe dream. Such contracts are “hunted”. So, how can an SME do to convince a major account ?
Calls for tenders won by SMEs: proof by example
The experience of several SMEs in industry or services is instructive. They have indeed succeeded in convincing important companies to trust them. Some examples :
- Buracco (manufacture of butterfly valves and flap valves) for TotalEnergies (one of the world leaders in oil extraction and refining)
- Filhet-Allard Maritime (insurance broker) for CMA CGM (one of the world leaders in maritime transport and logistics)
- Laulagun Bearings (design/manufacture of large bearings) for Siemens Gamesa (one of the world leaders in the manufacturing of wind turbines)
- Systech (manufacture of assembled electronic cards and wired cabling) for Airbus (world leading aircraft manufacturer)
What we can read/hear through articles in the specialized press or interviews on television or radio serves as an example.
I will summarize their strategy in O-ABCD-W.
First step of a strategy for responding to private calls for tenders
O like Dare
- It means first of all daring to work alongside other companies, often larger in size, resources, network, references, etc.
A baobab, before reaching its incredible size, is first small.
- But also, daring to confront the standards of this major account prospect: conformity, quality and reliability, technical and customization requirements... Standards undoubtedly varied and strict because we are not leaders without reason (durability, performance, conditions of exploitation…).
- Finally, it means daring to confront the skepticism in the perspective of the prospect (Goliath facing David). An inevitable skepticism, but logical when a customer plans to give his trust to a new supplier, an SME in particular!
Many consultants will say: this last point is undoubtedly the most different. Because few SMEs believe they are capable of convincing, considering themselves too small.
They can keep in mind this sentence from Franck Riboud (CEO of the Danone Group from 1996 to 2014) during an interview given at a higher business school:
“We are always someone's dwarf: our competitor Nestlé has a turnover four times higher. »
The ABCD approach to winning private tenders
Expectations
A thorough understanding of the client's needs is essential: why is this tender occurring? You have to invest time to understand your specific expectations and analyze your technical specifications:
- what are the expected performances?
- what durability?
- what level of quality?
To remember:
Deadlines and budget will be useful because they allow you to evaluate the cleavers:
- the financial limit
- the deadline to decide
Doing everything possible on this stage is fundamental. In a business intelligence approach, it is advisable to:
- thoroughly examine articles and reports in the media
- request the sales team for field feedback
- ideally, organize at least one exploratory meeting with the client team
- take advantage of a company visit (proposed by your professional organization or CCI)
- meet at a trade show
- take advantage of/arrange a meeting at a forum, around a golf course, etc.
Thus, everything is good to clarify expectations and detail the client's priorities. And better yet, to reveal your deepest fears: price wars, new technology, societal change... Allaying them can help convince the customer.
B-benefits
This is then the phase of the value proposition, ideally unique because it is personalized.
It will obviously be adapted to meet the identified expectations... or even exceed them!
Features
How are the promised benefits possible?
Now is the time to list all the arguments to convince people of their relevance and feasibility:
- Regular deliveries to remote places?
- Real-time services (remote maintenance, remote troubleshooting, etc.)?
- Customer service with extensive flexibility (24/7 hotline, multilingual)?
- Standard solutions for everyday use or tailor-made for exceptional cases (3D printer at the customer's premises to create an emergency spare part)?
- Stocks of critical items on consignment to guarantee the customer against any operational shutdown?
- And so on.
The example of Stéphane
Stéphane* is a young CEO, designer of specific e-commerce solutions in the SalesForce environment (a reference). A former consultant, he believes he can target large CAC40 groups.
But he quickly realized that he absolutely had to present himself as a structured company to be credible. It is then his mother (under her maiden name) who will help him as official HR manager. His sister will be his consulting engineer. His father will organize the logistics.
To appear as an ambitious SME, it participates each year in the sector's benchmark trade fair in Las Vegas.
Gradually, this strategy will bear fruit with its target. Today, his company has more than 150 employees between the USA and France.
*First name changed
Demonstration of your expertise/mastery
A crucial step to convince and prevent the client from rejecting your proposal with “too good to be true” or “they are too small to achieve it”. At this stage, don’t skimp! Remember that it is difficult for a giant to believe that the small company in front of it knows how to do it (and sometimes even better than it).
Present all your elements:
- Detailed case studies and experience gained from similar successful projects
- presentation of a visual: prototype, 3D plan, complex parts produced in the past, diagram, Gantt chart demonstrating mastery and projection by step
- labels and certifications (ISO type and similar)
- quantitative data and impact measurements (for example, increased performance of wind turbines)
- reminder of the skills and background of employees (so-and-so worked on such-and-such project, such-and-such country, such-and-such technology)
- customer references and testimonials on the theme and/or the company's commitment (sense of quality, service, country versatility, etc.)
The objective? Let there be no objection from the customer: he must be reassured.
To finally arrive at W: the W-aw effect. That is to say trigger the effect of positive surprise in the customer: he can trust this new supplier. In short, you have won!
Calls for tenders: beneficial effects in the long term
All your efforts upstream are triple beneficial. Indeed, such a victory is transformative through its profound and long-term impact:
1. Accelerated growth
- Strong increase in turnover through your new customer
- Path opened to new contracts by playing on this customer reference
2. Improved capabilities
The requirement for a large account requires refining internal processes and improving technical and organizational skills.
Trust: a question of space-time
It's the story of a French automobile supplier who tried to work for a car manufacturer in Japan. In vain. So he thought all his efforts were wasted. But one day the Japanese manufacturer decided to deploy in Europe. Logical choice: he turned to local equipment manufacturers, including a Frenchman… in whom he trusted.
3. Market recognition
- Thanks to increased notoriety and reputation in your sector
And if, however, this should not succeed, make this thought of Nelson Mandela yours: “I never lose: either I win or I learn”.
