RFP, which means request for proposal, is a way for businesses to put out a request for services and to accept bids for those services. For many, this is a way to reduce costs and get the best professional service provider.
Here are three benefits of using RFP processes.
You Set Up the Rules for the Bids
The first thing you do with an RFP is design the job posting. You’ll write down a number of things, including legal issues with the problem you want solved, form agreements, specifications of the project, necessary qualifications for the vendors, administrative requirements and rules, and a full description of the services that you need performed.
You Evaluate the Bids First Hand
Instead of going on hearsay and hiring a company to perform the work you want to have done, those businesses come to you with an RFP. Because they want to work on your project and are bidding for your business, the bidders put their best feet forward, explaining everything they can do for you for the money they’re asking for. This allows you to evaluate which bidder offers you the best value for the money and which one is likely to finish the job fastest. By looking into each of the bidder’s past work via their portfolios or references, you can also get a good idea of if the bidder will work well in your particular situation.
You Get to Negotiate
Negotiations can help you get your job done for less or help you get more bang for your buck. With an RFP, bidders are fighting one another for your business, so they’re more likely to negotiate and have options for you that will cost less money or provide more benefit. For example, if you want to hire someone to build a website, you might have three responses. One offers to build a 5-page site for $500. Another sees this bid and offers the same for $480 plus gives you extra page options. The third might offers 24-hour turn around times and 8 pages for $475 to make it more likely for them to win the job. If you reach out and want to work with the first bidder because of his or her reputation, you can take the other bidders’ offers in hand and negotiate by showing what else you’ve been offered.
These are a few reasons RFPs can work for you. Try one like Expedience Software, and you’ll have plenty of help for your IT concerns.