When to Walk Away: Evaluating RFPs and RFIs Against Your Competitor's Success

Receiving an unexpected Request for Proposal (opens in a new tab) (RFP) or Request for Information (RFI) is exciting and a little daunting. Now suppose you discover that your main competitor is currently providing the service and the client is happy with it. Then you should be careful. These four steps help you decide when to engage and when to walk away, so your time and resources go where they count.

Step 1: Analyze the RFX Carefully

Before you act, read the RFP or RFI closely. Look for these indicators:

Scope and Requirements: Are there areas where your solution distinctly outperforms the incumbent provider?

Evaluation Criteria: Is the focus more on compliance and price, or is there room for innovation and added value?

Client History and Satisfaction: Understand the client's relationship with your competitor. Are there any hints that they might be open to change?

A detailed analysis will help you determine whether there's a real opportunity to differentiate your offering.

Step 2: Set Up a Meeting with the Client

Once you've analysed the RFX, arrange a meeting with the client. Only a conversation tells you their motivations and the things the documents leave out.

Key Questions to Ask:

Why now? Find out what prompted them to issue this RFX. Are they experiencing any dissatisfaction with the current service?

What's the pain? Is there a compelling event driving this RFP/RFI? Perhaps a merger, acquisition, or an upcoming regulation that requires them to re-evaluate their options?

What are their priorities? Are they looking for innovation, cost savings, or simply fulfilling a mandatory review process?

The conversation shows you whether the client is seriously considering a change or only running a routine review.

Step 3: Qualify Hard, Disqualify Fast

Not every RFP or RFI is worth pursuing, especially if it's clear the client is satisfied with their current provider. Use these two tests to make the call:

No Pain, No Gain: If the client has no pain points and is only doing due diligence, it may not be worth your time. Participating in a bid where the outcome is likely predetermined is a poor use of resources.

Added Value: Can you offer something substantially different or better than what your competitor provides? If not, gracefully bow out.

The harder you qualify, the better for your team. Put your effort into opportunities where you can change something for the client.

Step 4: Make the Decision

After gathering all the information, it's time to decide whether to proceed:

Participate Only if You Can Add Value: If you uncover significant pain points or areas where your solution offers additional value, go for it. But make sure your proposal highlights these advantages clearly.

Politely Decline if Not: If there's no compelling reason for the client to switch, be polite and decline to participate. That is professional, and it frees your resources for more promising opportunities.

A Cautionary Tale: When Every Deal Seemed Like the "Best" Deal

A few years ago, our sales team found themselves under immense pressure. The economy was struggling, the pipeline had dried up, and every opportunity felt like a lifeline. In response, the sales team jumped at every RFP and RFI, eager to secure business. Each deal was pitched as the "best opportunity," and the pressure to deliver was enormous.

But there was a problem. Back then, the presales team didn't have the authority to disqualify deals that weren't a good fit. We were expected to chase every lead, however weak it was. It led to one frustration after another. We worked long hours on opportunities that had little or no chance of success. And as you might guess, the win rate (opens in a new tab) was terrible.

Looking back, it was a nightmare. We were exhausted, morale was low, and the company was stuck in a cycle of wasted efforts and missed targets. I wish we had been honest about our chances from the start. And I wish we had had the tools to assess these opportunities properly.

The Functional Technical Qualification (FTQ) Framework

Fast forward to today, and things are different. If we had the Functional Technical Qualification (FTQ (opens in a new tab)) framework back then, our lives would have been much easier. The FTQ framework is a structured way for presales teams to assess each opportunity before they commit to it. It covers these points:

Evaluate Technical Fit: First, check whether your solution can meet the client's technical requirements. Look closely at their needs and their current setup. Then decide whether your offering matches their expectations.

Understand Business Impact: The FTQ framework also asks about the business impact. Will your solution solve a significant problem for the client? Is there a compelling event driving the need for change? If the answer is no, it's a red flag.

Assess Competition: The FTQ framework also looks at the competition. If a competitor is already delivering the service successfully and the client is happy, the framework guides you to weigh the chances of winning realistically. Can you offer something that significantly outshines the competition?

Client's Buying Process: You need to know where the client is in their buying process. Are they serious about a change, or just going through the motions? The FTQ framework shows whether the client is open to new solutions or only meeting a procurement requirement.

Qualification Scorecard: All these factors are combined into a qualification scorecard, which gives a clear, objective measure of the opportunity's potential. This scorecard helps the team decide whether to pursue the opportunity or politely decline, saving time and resources.

If you want to understand more about the FTQ, read the FTQ section (opens in a new tab).

Do you want to have the FTQ Worksheet? Check out the course (opens in a new tab)

Why Hard Qualification Matters

The lesson from those tough years is clear. Be brutally honest about your capabilities and your chances of winning a deal, especially when the economy is weak. The FTQ framework gives presales teams control, so only the most promising opportunities move forward. This saves time. It also boosts morale, increases win rates, and aligns the entire team around realistic, achievable goals.

Every deal counts, so qualifying hard is more important than ever. With the FTQ framework, you stop chasing every opportunity and focus on the ones where you can add value.

Conclusion

In presales, knowing when to walk away is as important as knowing when to engage. Review the RFX carefully, understand the client's motivations, and qualify the opportunity with rigour. Then your effort goes where it has the most impact.

It also shows the client that you respect their resources as well as your own.