What wins state tenders: price or quality?
There has been a lot of talking of state tenders lately. All market members hear of them, but not few decide to take part in state tenders, pointing on corruptness and absence of necessary resources for their preparation.
If approached correctly, question of taking part in state tenders can lead to the main source of revenue for a company that will bring a continuous income. If a company aims to receive a big state order, participating in tender is practically the only way to have it.
To understand how important this is, one should understand what participation in tender may bring to a table for a company. A lot of factors influence the income and its level. Also one must keep in mind the popularity of a firm. Often business owners think that they should provide the lowest price to win, but it is not always so. When a customer values members, minimal price is one half of evaluation and other factors constitute the other half. The most fortunate variation for state tenders is an optimal combination of price and quality of goods or services. Often it happens so that customer chooses company with the lowest price and then he becomes disillusioned of the quality of goods or services.
Companies make a decision to participate in tender to achieve various purposes. Some of them wish to determine the level of competition on specific market, whilst others want to receive the latest information on suppliers and customers of the market. But for most companies winning a tender means that they will develop a new stage of business and rising to a new level of work.
Let us sort out where to start and which employee can run this project. To try one`s strength, its best to start with small tenders, where an amount of an order is low and therefor there is no corruption schemes. On small orders one can develop his understanding of the tender working mechanism and improve his skills. Employees who are responsible for state tenders must provide a company with goods and services, which are necessary at the moment. As he forms a view on the company’s needs, an employee starts searching for goods or service on a decent price, in the necessary amount and from a reliable supplier. For this they keep track of targeted suppliers on the market and analyze their reliability. Aside from this they have to understand the price policy of a supplier well. Usually the price of goods or service is the most important thing for every customer. An employee, responsible for a purchase, must provide a supplier analysis with optimal combination of price and quality. As soon as all these procedures are made, customer can choose a suitable supplier basing on all parameters.
Each company makes a decision on participating in tender, but there is one unwritten rule – company should either participate continuously or not to it at all. For any business, the major part plays stability. It helps to surpass competitors and receive a great experience of working on the market of state tenders. If company did not win a state tender, it is not a reason to be distressed and to lower prices. Yes, there is an opinion that victory comes to supplier with a minimal price. Not well known company with a doubtful reputation may win and it upsets many major players on the market of state tenders. But an experience supplier can propose additional benefits, although his price can be higher. The most important thing is that he can guarantee high quality, which is often more important than a price. For example, if Translation Company Azurit Inc. participates in tender and offers perfect translation of documentation on the market price, the customer will most likely choose them. Indeed for any international business high quality of translations plays a major part and can save a lot of money.
According to new legislation, the price is not the most important criterion of choosing suppliers on state tenders. To win one, a company should make the best offer that will contain actual price, good quality and the best terms of supply. Those companies win that work hard and have their own strategies and thoughtful tactics that leads to victory despite the price for goods and services.