By the same token, most leaders realise that their central goal should be to establish long-term client relationships. This approach recognises the cost efficiencies in repeat business, versus the relatively higher cost of converting new opportunities into actual clients. (Studies have shown that it costs five times more to acquire a new client than to make a sale to an existing one.)
The cost of Bidding
Our conviction was substantiated by the results of our research with the University of Reading in the UK that put the average cost of construction tendering at 3% of the value of the project, with the average pre-qualification costs running to 1.5%. That means if you are winning one bid in five, then 22.5% of your win budget is spent on bidding costs. This is huge. The opportunities both to improve win ratios and to reduce the cost of each bid is something MarketingWorks has been committed to helping our clients achieve through selectivity matrices.