By Greg Lohr
Infotivity has been publishing request for proposal (RFP) software for almost 20 years now and the question we hear over and over again is: "How do I get on the bidders list?" In fact, we are hearing this question much more frequently now that digital copiers, multifunctional devices and network connectivity issues are driving most customers to re-evaluate their copier needs at the enterprise level. This article sheds new light on this age-old question.
The primary reason for the increased usage (and importance) of an RFP in the digital copier and multifunctional device industries is document management. Downsizing and the ever-present quest for increased productivity have forced every buyer to search for ways to capture and deliver documents electronically. The ability to simply copy a document is no longer adequate. Today, buyers need the ability to both capture the document in digital form and then print it at another time, maybe even from a different location.
Document management and workflow software is designed to automate this storage and delivery, with local area networks (LANs), wide area networks (WANs) and the Web being the delivery routes. Yet, in many cases, the document must still be printed, copied or faxed. It is the complexity resulting from this need to include networking and software that is driving up the use of RFPs by buyers.
This article, the first of a two-part series, discusses new ways of "getting on the bidders list." These new techniques include new lead sources and how to identify who is re-evaluating their copier needs. The second part will address how to write RFP responses that increase sales dramatically.
A Changing World
More and more large-scale acquisitions are being done through an RFP these days due to the increasingly technical nature of the products being acquired and the dollar amount involved. This trend definitely affects the copier industry for many reasons. Digital copiers can be connected to a computer network and the Web directly, and multifunctional devices that can scan, print, copy and fax are very useful as input/output devices for an entity-wide document (information) management system. More and more, we at Infotivity see many organizations both large and small evaluating the use of all their copiers as part of a larger document management system.
The Surprising Answers
Back in the old days, when analog copiers ruled, the main factors affecting a buyer's decision were very straightforward ones such as copy speed, document feeder capabilities, imaging functions and price. The factors were very easy to understand and very easy to shop. Purchasing agents created "bidders lists" of established (favored) vendors and established very structured bidding rules to help them shop. All vendors were instructed to submit a bid (quote) for supplying a copier that met a pre-determined set of specifications the purchasing agents understood very well. But, as I said, those were the old days.
Today, in the 21st century, it is the information technology (IT) department that sets the specifications about anything digital. This includes networks, software, and yes, copiers. Why copiers? Because, as mentioned earlier, document management and workflow software systems are very much in demand, and a multifunctional digital copier is now one of the primary input/output devices for such a system. Multifunctional devices are more and more becoming just another component in a larger system instead of standalone acquisitions. And the person in control is the IT manager or analyst setting the requirements for that system.
This all leads to a surprising answer to the question "How do I get on the bidders list?" The answer: Your goal is not simply to be on the purchasing department's bidders list!
Think about that statement carefully. Simply being on a list of copier suppliers maintained by the purchasing department is no longer enough because in many cases the type of digital copier to be used is being decided by another department, and maybe even an outside consultant. They certainly do not know about the bidders list maintained by the purchasing department.
What You Should Be Doing
Instead, you want to become the trusted resource that the IT manager relies upon to help identify what type of equipment is needed to meet his or her company's needs from a document imaging point of view. You want to be on the IT manager's "resource list." This means helping that IT person determine what is needed to convert a paper document to electronic format through a scanner, then store that scanned image, then print that document when someone else wants a copy. Of course, this task is much easier than it sounds! (Notice I did not mention the words "software" or "information technology" in this paragraph.)
All that you really need to do is contact the IT managers in your area and offer your "imaging" expertise and services to them. Yes, IT managers know all about networking and document management software. But they do need your help because they do not know about digital copier techniques or interface issues. They know very little about copier and office productivity. They are looking for someone to help them decide what copier or multifunctional device will fit into their overall software system needs. Simply refocus your marketing efforts and enjoy big rewards.
Call each of the companies in your area. Ask for the IT department. When someone in the IT department answers, ask who is in charge of document management. Do not try to sell copiers; always explain you are offering image integration services. If your firm has an imaging newsletter, explain you are just expanding the mailing list for a newsletter and need to know who to send it to. Your goal is to identify who is or would be the person developing requirements for a document management system.
When you do reach the correct person, you want to be very concise and to the point. Offer your newsletter or helpful information stressing your firm's expertise in digital copier network integration, digital copier/multifunctional device selection, scanner capabilities, scanner interface, device location, service and support of the above, and Web interface of the above.
It is very important to understand I am not talking about just glossy literature (that is nice), but also some genuinely helpful information or "how-to" material that will help establish your firm as an imaging expert. A good example would be a technical white paper either in hard copy form or available at your Web site. (You can obtain free outlines of white papers we use in the document management arena at www.infotivity.com/whitepapers/dm.html.)
Enjoy Significant Advantages
Being on the IT department's "resource list" offers many advantages and benefits to a digital copier reseller.
First, you will be informed about many projects when they are still in the planning stage, long before your competitors become aware of the project. Since you helped develop the specifications of the copier equipment, the RFP will be "slanted" towards equipment that you sell.
Second, you will always be on the bidders list, even if an outside consultant is involved. The IT manager will direct the consultant or internal purchasing agents to send you an RFP, if that is needed. In many commercial organizations, large and small, the IT department sends out RFPs directly, while in most government organizations the purchasing department is involved to one degree or another.
An Insider's Advantage
While it is still important to send helpful information about your firm's imaging expertise (as outlined above) to the purchasing department, you gain a big advantage by also addressing IT departments using an informational approach. You will always be kept informed about upcoming projects before your competition learns of them, and you will always have an "insider" advantage.
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Greg Lohr
Greg Lohr is CEO of Infotivity Technologies Inc., Pittsburgh, Pa. Infotivity (www.infotivity.com) has helped many resellers and manufacturers increase profits through effective RFP preparation and RFP-based marketing techniques for almost 20 years. Lohr can be reached at (412) 384-5535 or greglohr@infotivity.com.