The main reasons for introducing RFP into the business process. But how to create one? What is the reason between RFP writer costs and internal RFP writers?
The main reasons for introducing RFP into the business process
Tough economic times and intense global competition are putting increased pressure on companies bottom line. More than ever, the business is focusing on its core activities and is very careful in managing the company’s financial flows. Naturally, this led to a detailed study of the costs of purchasing from suppliers – sometimes these volumes can be equivalent to half of the company’s annual income. As pressures continue to build, companies need to be sure they are getting the best value for their procurement spending, or they can find a competitive edge to match.
In a highly competitive environment, a business needs to focus on its key activities, which generate profit for the company, to increase its competitiveness by maximizing optimization of all processes. And everything that is ballast should be outsourced, automated, and optimized. Otherwise, this ballast will pull down and prevent companies from developing.
Government organizations, as well as private companies, often carry out various purchases of goods and services. They can be conducted by submitting a request for prices and conditions. This procedure is called a request for quotation.
RFP (Request for proposal) is a document that is a confirmation of the price for the provision of services or the supply of goods, as well as the fact that they meet the declared parameters. There is only one correct way to draw up and issue a commercial proposal – to provide the supplier with a letter on official letterhead signed by the manager and certified by the seal.
Advantages of RFP
The RFP can be open with the publication of the notice in the print media or on the Internet and closed with the participation of persons who have received a personal invitation to participate in the request in advance. In recent years, such a counterparty determination procedure has become widespread. In order to comply with the principle of reaching a wide range of people and to involve more participants in the RFP process, it is recommended to make a request for proposals on specialized electronic platforms on the Internet.
Summarizing the above, we note the main advantages of using RFP:
- coverage of a wide range of people, there is a choice among a large number of proposals, which can reduce the cost of the purchase;
- saving time for employees, both on searching for organizations on the Internet, and on individual inquiries, then on analyzing applications;
- cutting off unscrupulous participants, as they avoid publicity and are not competitors in terms of price.
Outsource RFP writer vs internal RFP writer: how much?
Typically, in consulting firms and sales departments, bidders prepare documents related to pricing, marketing, and product design. They evaluate requests for proposals (RFPs) and develop responses to help their employers get new business and contracts. To succeed in this position, you need excellent organizational and writing skills, as well as attention to detail, and a solid understanding of how your company can meet the needs of potential clients.
The pricing policy for writing RPF ranges from 100$ for 1 page of the answer. If the answers are complex in structure, the price may be higher. A good outsource writer spends approximately 20-30 hours creating complex, professional RFP responses.
Besides, according to surveys, the average salary of the internal company`s writer is about 60000-80000$.