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Getting Bids From Suppliers

by Tom Fogden
April 17, 2020 - Updated on July 28, 2021
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Bids From Suppliers
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When you need a new product for your production line or to add to your store shelves, you need to determine what is the best price from your suppliers. The process of accepting a bid will help you decide on the best price and save your company money. Here is what you should look for when you ask for quotes.

Price Versus Cost

When you ask for a Price Analysis, you are requesting an estimate for the product itself. The bid will encompass every aspect of the item in one number. This is usually done when there are multiple competitors that offer the same type of thing or their offerings have similar elements. A cost analysis happens when the product you need a quote on is unique so there is only one vendor. The bid is broken down to every component of the item including materials and labor. Doing this lets you see if what you are asking a quote on is worth what you are going to pay for it.

Reaching Out To Vendors

When you are ready to get the estimates for what you are requesting, reach out to multiple suppliers who might be able to help you. Give them very specific details of what you are wanting and a date you are expecting the information returned to you. If they are a new vendor, ask for a list of companies they currently work for as a reference. Once you receive them, study them closely to determine which is the best one for you.

Look for more than the dollars. Evaluate when the product will arrive, how often they can supply it, and if their customer service department is reachable in case of an issue. Investigate for any complaints against those that you have chosen to ensure that they are reputable. Feel free to ask questions or ask for more from those who have submitted proposals to you until you feel comfortable with your choice.

Awarding the Bid

Once you have made a decision, contact the company you want to work with and inform them that they won the bid. Schedule a meeting to work out the fine details, set up a schedule for your first delivery, and meet with your salesman and customer service representative. Reach out to the other companies that you received quotes from and inform them that you went in a different direction. Ask to keep their information on file for future business and thank them for their hard work.

Tags: bids from suppliersfeel comfortable
Tom Fogden

Tom Fogden

Tom Fogden is a writer for Twollow with a range of experience in the world of tech publishing. Tom covers everything from cybersecurity, to social media and website builders when he's not reviewing the latest phones, gadgets, or occasionally even technology books.

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