Tender response writers take different approaches to charging for their services. But should you expect to pay a success fee to your tender writer? And if so, how does it work?
Personally, I charge a fixed fee based on the value I provide and the estimated number of hours that will take me to thoroughly review the requirements and conditions and develop a comprehensive response.
My Thoughts About It
Whether you should expect to pay a success fee depends on the terms you've agreed upon. The reason I don't charge it is because there are many factors that influence whether or not the tender will be successful.
Besides, not all of them are in my hands — the depth of your experience and how you price your services are just two examples. As a professional tender writer, I strongly believe in doing the best I possibly can for my clients. Of course, that means getting paid accordingly.
But once we agree on a fee, I won't stick my hand out looking for more because you've won. It's because it's my job to ensure you have the best chance of success. If it interests you, you can read what my clients say about me here.
I invest my time in you before providing you with a quote for my services as a tender response writer. Additionally, if you don’t have the skills, experience, or resources to meet the tender requirements, I recommend you look for a more suitable tender. Do that instead of pursuing one you don’t have a great chance of winning.
I pay close attention to what my competitors do, though, usually through client feedback. So, I know many tender writers will charge a big chunk of bucks to write your response. Most of them will even add an additional hefty fee for success.
The success fee might be a percentage of the expected value of the tender over the life of the term. It may also be just an arbitrary amount that the tender company puts forward.
My Advice
My strong advice is to ALWAYS talk to two or three professional tender writers and get a few quotes before you decide. You'll find an extensive range of approaches and prices. One recent example is a client who received quotes ranging from $2,000 to $11,000 for their tender.
My fee for that tender was $4,500. The company that quoted $11,000 wanted an additional $15,000 if the client won the tender.
Success fees may align the interests of the tender response writer with your success, as they have a vested interest in helping you win the tender. However, it's essential to strike a balance reflecting the effort and expertise in the writing process.
As I've already mentioned, your writer should do their utmost to help you win - BECAUSE THAT'S THEIR JOB.
If you're positively inclined towards a quote that includes a success fee, ensure that a written agreement or contract clearly outlines the payment structure, including the success fee. It will help avoid any potential misunderstandings or disputes later on.
A Final Note
Before hiring a tender writer, discuss payment terms openly and come to a mutual agreement. If the writer suggests a success fee, ensure you understand the percentage and the conditions it would apply.
If you're uncomfortable with success fees, try to negotiate a different payment arrangement that suits your preferences and budget better.
That's it from me for this blog! I hope you've found it helpful. Don't forget, if you need a hand with your tender, I'm happy to chat at any time (and a chat costs you nothing). You can contact me by phone at 0400 514 579, email me at pauline@tenderwise.com.au, or fill out this form.
Happy tendering!
-Pauline