OnlineTenders Educates SMEs About Misconceptions Regarding State Tenders

Success in government contracts by avoiding tender myths

As part of OnlineTenders’ perpetual effort to educate and empower its users, the leading online tenders platform in South Africa shared some misconceptions about government tenders.

OnlineTenders’ Operations Director, Sherlin Pather commented, “We always strive to supplement our efficient platform with valuable information and advice. Right now we are sharing some common myths regarding government tenders. And we’re doing this being especially aware of how lucrative state contracts can be.”

These misconceptions, and the realities behind them, are as follows:

Myth: “Winning State Bids is All About Price. The Cheaper the Better.”

Fact: The government looks at the overall value for money. Granted, the state will require ample justification to spend money on a project. But when price is the reason behind your bid being rejected, it’s really your failure to demonstrate the value you would bring to the table. Value is also identified through a scoring phase, and value for money is a realized ratio of the price and/or the score evaluated by the client.

Myth: “It’s Not Worth Engaging with Public Sector Organizations Because They Eventually Go with their Own Suppliers.”

Fact: The reality is the government doesn't always have a good idea of the number of companies operating in any given industry. And so, businesses that avidly market and advertise their viability to the government have a better chance of winning state contracts. Businesses need to make themselves known to engage with government tenders.

Myth: “The Government Knows Everything”

Fact: The government does not always have comprehensive or adequate knowledge about important elements related to your industry, competitors, market, technologies, products and services, etc. And assuming otherwise is exactly the kind of things that can contribute your proposal being rejected. If you think something is relevant for the government to know, point it out for them.

Myth: The Government Never Offers Debriefing Sessions

Fact: While the government may not provide you as detailed a tender brief as a private sector client might, you can get one by requesting it. The debrief plays an instrumental role in helping you enhance your tender bidding practices. It will particularly help you better market your business to public sector companies and identify lucrative streams of income. So if you aren't given a debrief initially, feel free to request one.

Mr Pather added, “State contracts are particularly valuable for SMEs. Getting these (government) tenders acts as a bedrock for small businesses to become sustainable. A profitable bid can propel small businesses to develop a roadmap to sustainability in terms of profit. These profits can be pumped back into the small business to fuel their expansion plans.”

This sharing of crucial tendering advice also comes at a fitting time as SMEs in South Africa are currently buckling under challenging economic conditions.

About

Founded in March 2007 and based in Pietermaritzburg, South Africa, OnlineTenders is a trusted tender notification service throughout Africa. Each day, new opportunities are listed from all levels of government and private sector companies throughout South Africa and Africa. Using hi-tech online Internet software, tenders and business leads are collected and classified by industry type, keywords and regions to match exactly the kind of tenders relevant to your business. You can learn more about the OnlineTenders at www.onlinetenders.co.za.

Contact Information

Sherlin Pather

Email: sherlin@onlinetenders.co.za

Phone: (+27) 010 823 2600