Q & A Table of Contents
How To Say No
From: Tim, Norwalk, CT, USA
Question: What are some tips to use in turning down a vendor's proposal for a project (i.e, they didn't win the bid)?
Response: When you are inviting proposals from a variety of vendors, it is thoughtful to utilize a transparent process so they can understand the chronology of the decision-making, what guidelines are being used in your choice of vendors, and, when it makes sense, how they and their bid stand up vis a vis the factors upon which you are basing your choice.
If you go through the process in this manner, bidders should be able to develop a reasonably realistic set of expectations about the outcome. When you ultimately say 'yes' or 'no', it will probably not come as a surprise -- and the long-term relationship should be strengthened in case future opportunities arise to do business together.
When the process has been obscure and the bidders have been kept in the dark, the best approach when delivering the bad news is to be honest: "We looked at several possibilities. The vendor we selected had particular strengths (which you might name) that convinced us to choose them." You need to deliver this message in a way that makes it clear you are not inviting the disappointed bidder to try to reopen negotiations -- unless that is your purpose.
You may also be doing your 'unchosen' vendor a favor by pointing out things you felt were weak in their proposal. That gives them ideas for how they might win business from you or other potential clients in the future.
Above all, treat them with respect. Over the long run that will serve your interest as well as theirs.
Good luck,
Steve
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