Why RFPs Are A Waste Of Time
The simple truth is that 99% of all RFPs are market data gathering expeditions. What most buyers want are crazy low prices that they can take back to the incumbent provider, wave triumphantly in their face, and use to negotiate new, more favorable contracts. The new carrier kid on the block has no real chance of grabbing a slice of the pie. Or the RFP is simply a way to update their understanding of market pricing. Often an annual exercise done at the same time of every year. Vendors who participate in these annual rites are simply providing free consulting. It is a waste of their pricing department's time. RFPs are an excellent way of alienating smart vendors who realize their chances of winning business are low due to the horde of carriers bidding for the purported business. I say 'purported' because most of the time only a fraction of the RPF circuits requests are purchased. If an RFP is sent to 40 carriers, the vast majority of participants will be disappointed and ine