Are you a Freelancer/ Independent Contractor/ Vendor?
Have you recently come across the term Bid Letter and you are trying to find an authentic definition?
Well, you have landed in the right place.
Today, we will discuss Bid Letters and all the jargon associated with it.
Let us first learn the definition of a Bid Letter.
A Bid Letter is a bridge which serves as a form of communication between a company and a Freelancer/ Independent Contractor.
What does the Bid Letter outline?
- Scope of Work (Product/ Service)
- Fees
- Payment Schedule
- Timeframe
- Deliverable
If a company is looking for a Freelancer/ Independent Contractor to provide certain Products/ Services, it will put out a request for proposals.
Next, interested Freelancers/ Independent Contractors will create a Bid Letter in response to the proposal request.
It is extremely crucial to understand the company’s requirements and criteria before drafting a Bid Letter.
Usually, a proposal tailored to the specific requirements and criteria increases the chances of getting accepted by 2X.
In addition, acquaintance with industry rates for indicated Products/ Services is equally important for a Bidder.
Why?
Overpriced Bids end up in rejection.
Underpriced Bids have a smaller return on investment.
If you are a newbie, you can find plenty of Bid Letter samples on the Internet. In fact, some sites even offer appealing Bid Templates.
Although the Templates are generic, they can be quickly customized/personalized to cater to the proposal requests. Interestingly, some even provide professional writing assistance which can help you in creating Drafts and any follow-up communication associated with the Bidding.
Amazing, isn’t it?
Nonetheless, a perfect Bid Letter doesn’t assure any acceptance. Often, money is the prime aspect.
So, what’s the ideal mantra?
(Professional Bid Letter + Reasonable Delivery Date + Reasonable Cost)= Higher Chances of Acceptance
What if the proposal gets rejected?
If your proposal gets turned down, the concerned company usually sends a response back indicating the reason. Maybe they onboarded somebody who could do the project at a cheaper rate. Or, the chosen candidate could deliver sooner. Generally, companies always approach the Bidder every time they are need for a similar product or service. Next time you draft a Bid Letter, keep in mind these points and nail it! Good luck!