If you're a LED Lighting Reseller then you've been around the bend with Requests for Quotes. RFQs come in all shapes and sizes and generally take a lot of time and effort to field. But why then do so many of our clients report that for all that input they put in is there generally little to no reward?

The simple answer to this is that the right questions haven't been asked up front. 

At Clear Sky Distributors we strive to help all our resellers by not only giving them the best quality LED Lighting products at the right price, but we also assist them in ascertaining whether the prospect they're working on is worth perusing.

Just because someone asks you to quote, doesn't been you should. Actually in most instances you should politely say NO and not look back. 

So how do you know whether an RFQ is worth spending your non-renewable resources of time and energy on?

By asking five major questions:

Is there too little information here? 

I'd say this is the single biggest problem with RFQs that are sent out these days in Southern Africa and is simultaneously the largest contributor to both frustrations and totally wasting your time. 

For example, if you have an RFQ that says "100w LED Floodlight" you should probably walk away immediately. Why? Well, by way of analogy, why would you waste you time car hunting for someone that says they want to buy a "white sedan"? What are the chances you're going to hit the mark by quoting one option out of the literally hundreds if not thousands of possibilities?

Same goes with a 100w LED Floodlight because you don't know what lumen output they need, what IP rating, what colour temperature, how long the warranty must be, if the floodlight is near the ocean or not, if the unit is going to be used at a mine or where there is serious vibration, etc. There are simply too many unknowns and in our experience, asking questions usually doesn't yield enough insight to warrant quoting. 

But if you are going to quote on RFQs with too little information, the best bet is to quote the cheapest product because this is the only way the buyer will be able to quality.

But this opens up a whole can of worms quoting on cheap LED lights that aren't going to last their short warranty periods because if you borrow on price you sacrifice quality. And at the end of the day, chances are you won't be the cheapest out there. 

Is the RFQ in line with my core business? 

Such an import question and one that so many resellers overlook. If LED Lighting supply and/or installation is not part of your core business, how can you hope to compete against others in the market who are?

Jack of all trades never really get anywhere and must rely on blind luck more than on expertise. Do you really want to be the former? 

Bottom line - If the project or product request falls outside your expertise or isn’t in line with the direction your business is headed, you really should decline or pass it on to some else.

Saying NO, allows you to focus on opportunities that better match your capabilities and long-term objectives - and that will result in a better conversion rate of a prospective RFQ into a paying job. 

Are the timelines and/or budgets unrealistic or unreasonable? 

So if you have an RFQ that is nicely detailed and also is in line with your core business, the next critical thing to look at is whether what they're asking for is realistic and reasonable?

If you're require you to import product via sea freight and the RFQ says you have 4 weeks to do so, you should say NO because no one can import products that fast in Southern Africa with lead times now stretched to 8-12 weeks (minimum) because of current congestions, problems with TransNet and the increased costs of container shipping. 

If your RFQ requires you to install 100 lights a day and you know you can only do absolute maximum of 30 even with extra assistance and outsourcing, say NO. 

If the RFQ requires an economy option to be supplied over a number of years and they require you to fix your price for this term you should probably say NO as well because there are just too many factors that can really work against you and that are totally out of your control such rates of exchange, inflation, increased shipping costs etc.

If the RFQ is unreasonable it's usually because the people that write them up know very little about what they've been instructed to buy and in our experience will remain adamant and resistant to adjusting their expectations. So say NO and walk away. 

Is the issuer of the RFQ reliable and trustworthy? 

It's important to know who you're dealing with. It's all very well to land a project or job with the promise of a solid profit, but if the company you're going to be working for has a history of bad debts and not paying suppliers, they're probably not worth doing business with unless you hedge your bets and reduce your risk by getting a large up front payment. 

A little research can go a long way before you commit to spending time with an RFQ by searching online about the company itself. If they have bad press related to your core business services and products or are in financial trouble, then it's best to say NO. 

Finally - Do I have the time and capacity to fulfill the work? 

Resellers, like everyone else, have a finite amount of hours in the day and staff to carry out work. If you’re already at capacity with other projects or commitments, taking on an additional project could stretch your resources too thin which can negatively impact the quality of your work and relationships with existing or new clients.

It’s always better to maintain you usual high standards and deliver on existing promises rather than overextending yourself and doing a crummy job because people are ten times more likely to complain about you than they are to push praise.

So keep your good name clean by saying no to anything that will be too challenging to do right in the first place.

Conclusions

There are lots of other considerations to whether or not to take on an RFQ, but these five questions, if asked honestly, free of the allure of just making more money, will save you a lot of time and energy so you can focus on better bets and more fulfilling work. Saying NO isn't rude - it's practical and in the end respectful of all party's integrity and time. 

If you're working on a LED Project and you're looking for quality LED lights, Browse or LED Lighting Catalogue and then Request a Quote from us.