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Introduction
There are two aspects of competition to consider in any proposal. First, who is proposing against you, and secondly, who is the direct competition of your prospective customer.
Your Competition
If you propose often, then you probably know who your own competitors are. The prospect will generally identify the other firms they are considering if you ask. You might want to create files of information on each competitor to give you information to use in future proposals.
Analyze the competition by asking questions like these:
- Does any one competitor have a particular desire to obtain this specific client?
- Is any competitor trying to establish their credentials in this prospect's industry?
- If you answer "Yes" to these questions, your competitor is likely to present a very low fee--to "buy" their way in.
By asking the prospect why different competitors were asked to bid, you will get an idea of the perceived strengths of each one, as well as your own strengths.
The Prospect's Competition
If you are aware of whom the prospect considers to be their main competition, you have an excellent source to tap for information on the industry or the issues involved with running an organization of this type. Probe to find out why this organization is such an important competitor, and you will get useful information about where your prospective customer feels vulnerable or has an edge. Talk to contacts within your prospective customer's organization to get details about the kinds of issues they face. Get information on the competitor. Using this background in your meetings and in your proposal demonstrates your knowledge and expertise in a way that simple claims cannot.
Publicly-traded (SEC) companies are required to file annual reports and other documents with the Securities & Exchange Commission each year. These documents, and particularly the annual report and proxy, contain useful background information for proposals. Most companies also have general information brochures available if you just ask.
In addition, online services such as Lexis/Nexis and Compuserve have extensive databases of information. Use the information you gain from these sources and from client meetings to demonstrate in your proposal that you understand the issues your prospect is facing.
Copyright 1997 by Kaye Vivian, ABC. (kvivian@cloud9.net) All rights reserved
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