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49875Use The Tendering Process To Buy

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  • Waldo F. Odonahue
    Jun 17, 2006
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      Sorry,not familiar with process called"formal tendering"


      "tender 2 verb [ trans. ] offer or present (something) formally : he tendered his resignation as leader. • offer (money) as payment : she tendered her fare. • [ intrans. ] make a formal written offer to carry out work, supply goods, or buy land, shares, or another asset for a stated fixed price : firms of interior decorators have been tendering for the work. • [ trans. ] make such an offer giving (a stated fixed price) : what price should we tender for a contract? noun an offer to carry out work, supply goods, or buy land, shares, or another asset at a stated fixed price. PHRASES put something out to tender seek offers to carry out work or supply goods at a stated fixed price."

      Example, government procure goods and services by allowing suppliers to compete with each other by "bidding" on a material or service contract. It like an auction - where you ask retailers, wholesalers, manufacturers to bid [quote] against each other.

      This is how retailers, manufacturers buy their supplies and services - if they want to stay in business. Anyone in the house building business will be out of business if they don't use a formal tendering process.

      One example, I needed 30 windows for a house I was building. 7 window manufactuers were contacted to see if they wanted to "bid" (quote) on my contract. I then sent out a quotation request form detailing size, style, number of windows etc.. The manufacturers must return firm quotations in designated number of days. Then the game begins. Each supplier is contacted - except the supplier with lowest price - given the lowest price. It's time to sharpen perncil! In my case the highest price supplier - reduced price by 30% to become the lowest price... and so on.

      By the way - "list price" or "retail price" are meaningless terms. When I first started out in renovations - I thought I was getting a good deal at a electrical wholesalers for house building (panels, cable etc.) by getting 15% off "list price". Later on I found out that others were getting 60% off list price! The only real price - is the quote obtained through a formal tender.

      Go to Stapes and get a package of quotation forms. By a book to get details or check out various web sites:

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