What is a Tender? And Why Should You Pay Attention to Them?

To sell your product, you will have to compete in the sales marketplace no matter what it may be. Therefore, to win you must offer the buyer the same features or characteristics as your the competing products but at a lower cost. That is, the consumer chooses from whom to buy the goods from among the suppliers who meet their criteria. Such a process can be seen as a kind of informal tender.

We will talk in detail about what is a tender and how to participate in it in this article, discussing all the subtleties and features of these events.

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What is a tender?

A tender is an event where bidding takes place between suppliers to sell their goods or services to a buyer, usually an institutional buyer. When the buyer needs a particular product or service and is ready to purchase it, they are looking for a manufacturer who offers the products for the lowest possible price, but at the same time with a quality guarantee.

Tender meaning

To visualize how tenders are held, let’s give an example. As a rule, people who have heard the word “tender” for the first time imagine a social event where stately investors buy projects to construct another villa or yacht. Unfortunately, this is not the case.

Everyone who has been to the market or shopping center at least once has participated in a kind of informal tender. Remember the situation when you go all around the market, looking for the best price on something you need? But the product for this price should be equal in quality to the alternatives. So, let’s say you need to buy tomatoes. You are the buyer, and there is a need for a product that you are ready to purchase.

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There are many options available to you at different prices. The the seller who is a bit further away is selling a kilogram of tomatoes for 20-25% cheaper than the one who stands at the very front of the shopping rows. But, the quality, taste, and shelf life of these tomatoes are the same.

Of course, you are more likely to purchase the lower priced tomatoes in this case, which means that the seller from whom you made the purchase “won the tender” in this case and made a profit. Therefore, it will be pointless to order SEO in such auctions as a rule. Because, here, the main thing is to make the best offer, that is, to minimize the price and maximize the range of services and the quality of their implementation.

What is a tender for?

So why, after all, is a tender needed? This event is beneficial to both the seller and the buyer. Experienced people in business who have a clear idea of perfect competition often take part in various tenders. Firstly, it is the reputation of the company.

If an enterprise actively participates in various tenders in its field, without fear of competition, and openly declares its product, this suggests that its work is worth attention. It inspires the confidence of potential clients of the company, and when they once again see a familiar name in the list of nominees, they are waiting for something worthy. The company’s task at this moment is to provide them with a long-awaited and unique project that will reflect the very quality of their activities.

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Participation in tenders: where to start

Not many people know where to start participating in tenders, thereby missing the opportunity to present their product to the public. You need to understand that tenders held at a high level, for example, at the state level, are an official event that not everyone can get to. Therefore, a company that has decided to become one of the contenders for winning the tender should be ready for a huge amount of work.

Participation in tenders

By work, we mean not only diligent efforts on the project that will be presented at the tender. It also involves filling out numerous documents, including submitting an application, which will be considered by the commission organizing the event.

Do not be surprised if, after applying for participation in the tender, all kinds of public services will descend on the company, which will check whether the company meets all the requirements according to various regulatory documents, acts, and specifications. All this complicated procedure is done to not let “just anyone” into the candidates so that, in case of victory, the customer can rely on the contractor, in whose project they will invest his funds.

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What you need to participate in tenders

In terms of participation in tenders, it is necessary to consider what is needed for this. Of course, it goes without saying that you need qualified employees and a worthy project, but also a unique logo and slogan, which is included in the corporate identity of the company as well. If the client sees that their future partner has not developed their image, they will not take the custom project seriously.

Also, the company must be registered as a legal entity, according to all requirements regarding the form of ownership of the enterprise. Of course, to do this, you need to contact the relevant services to tell you what the appropriate form of ownership is. In addition to official registration, the company must have a current account and an individual tax number and have no debts with the bank.

And, finally, the most important thing is the project itself, without which participation in the tender is impossible. First of all, the project’s structure should correctly cooperate. Future investors and the organizers must be able to see the description of the subject area, the identification of problems, and ways to solve them with the help of the participant’s product. To develop a persuasive trade offer, at a minimum you need to watch the best films about marketing and sales, at least for awareness and knowledge.

You’ve won the tender: what’s next?

Suppose the investors appreciated your offer and you won the tender – then what do you do next? Naturally, within the tender framework, the full details required to execute the contract will not be provided. A formal partnership agreement will be signed, but for the contractor to start working in earnest, they must initiate discussions with the customer to clarify all the details and make adjustments and amendments.

Won the tender

In general, the very essence of the finished product will not change, but some details will be adjusted according to customer requirements. Sometimes, it takes more than one meeting to fully proceed with the implementation of the project.

The most important thing that distinguishes a tender from an auction is the ability of participants to change the terms of the offer. For example, a person comes to an auction to sell a watch from his own production for $500 but during the auction, the price increased to $5,000. Of course, he himself cannot cause this; it happens under the influence of the participants themselves, who, obsessed with the desire to buy, begin to offer their price.

In this case, it is no longer the customer but the manufacturer who chooses who is more profitable to sell their products to. Of course, the choice will fall on the one who offers the greatest monetary reward. Moreover, an entrepreneur has something that is now profitable to sell in online stores or on popular trading platforms.

And another, no less important difference between an auction and a tender is the priority by which the goods are purchased, that is, the price. If, within the framework of the tender, participants, in addition to attractive prices, provide a range of services on favorable terms, then according to the auction rules, the cheaper the lot (thing), the better it is to sell it, since it is much “easier” to add value to a small price.

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