Is it wrong to no-bid a proposal request?

Recently, one of the sales representatives in my company provided me with a request for proposal from a new customer.

The timeline listed in the proposal request was tight so I checked into our internal development schedule and found that our development team was strapped with current projects. I then checked into our vendor resources and determined that there was availability, but experience with this type of project was lacking.

I had a tough decision to make. Do I go ahead and bid on the project or do I no-bid?

Although this was an opportunity for the sales representative and our company with this new customer, I felt it was best to no-bid vs. taking the chance with our external vendor and possibly not doing a good job. My sales representative wasn’t too crazy about my decision, but came to understand and agree with me after a few days of retrospection.

Is no-bidding a project a form of business suicide? Although every situation is different, I sought the opinion of my peers via the DC Web Woman List. I received overwhelming responses to this question. The general consensus is NO – no-bidding is not a form of business suicide but a form of ensuring that you are providing a quality product.

No-bidding doesn’t mean that you can’t do the job, but does mean that you are conscientious enough to make an informed decision with the customers’ best interest being the key factor. While you may not have the opportunity to shine with this project, you can and will have other opportunities to shine with this customer as long as you are honest in your response.

Customers appreciate the honesty and the fact that you are looking out for the best interest. This goes a long way in customer relations and will establish a relationship with your customer for years to come.

Thanks to my friends of the DC Web Women’s Group for the feedback.