A bid letter acts as a method of communication between a business and an independent contractor, dealer, or freelance worker. The bid letter will outline all the products or services that the contractor, dealer or freelancer are able to deliver, and also what the costs of those services or products will be. Bid letters also often include a particular date or time period for completion.
Should a company wish for a third party to perform specific tasks or provide certain products, usually it will distinctly identify the services or products which are requested. Next, the company will then put out a desire for proposals and interested contractors, dealers or freelancers will then outline a bid letter in response to the proposal request.
Being Prepared and Able
When bid letters are outlined, comprehension of all of the company’s needs is vital. A proposal which has been tailored to the specific request will help boost the chances of a favourable bid. The bidder must be prepared and able to manage all aspects of the assignment and, if a deadline wasn’t made in the proposal request, the bidder will have to be able to set a realistic delivery date. For anybody interested in learning to be a Bid writer, check out bid writing courses from the experts at Executive Compass.
Marketing is a major part of a bid letter, often also known as a bid proposal. Fittingly, the bid letter writer should be more than familiar with the market rates for all products or services being requested. This is very important because rejection will be likely for any overpriced bids, and also because a bid that has been priced too low will generate a smaller return on investment.
Samples and Guarantees
Naturally, even if you have a perfectly drafted bid letter, it won’t immediately guarantee being accepted, so taking time to research how to write a bid letter can speak to a person’s professionalism and work ethic, but usually at the end of the day, money will still be the primary factor. Cost saving is generally a much stronger motivating reason for a business than a bidder’s writing style. But, saying that, the perfect bid letter, with an acceptable delivery date and a sensible price, will increase the bidder’s chances of landing the project.
If the proposal gets turned down, the hiring company will give the reason why the bid was refused. Perhaps it was found that another vendor could do the job for a lower price or maybe the successful bidder could deliver earlier. Whatever the reason, a rejection doesn’t mean the end of the world! Should the bid have been attractive enough, the bidder might be the first person in the queue the next time the company is in need of similar products or services.
Bid writing is certainly a bid market for niche people!