Zach Selch explains how tender specifications can be weaponized against suppliers. Three Australian manufacturers colluded to block a cheaper installation method by embedding it in tender specs, forcing hospitals to reject the cost-saving solution even though nothing legal prohibited it. Sellers must recognize and push back on these strategic requirements.
Chapters
Sometimes what they're actually doing is they're holding out your strongest selling benefits. So they're trying to nullify your strongest selling benefits. I sold a product that in Australia there were 3 local manufacturers and we had developed something that made our installation cost about half as much as theirs. It was a very, very strong benefit for the market, lowering our overall cost, being more reliable. It was, it was a strong benefit, and the local manufacturers essentially banded together and were able to convince the market to forbid that in the local market on Tender specifications. There wasn't a legal issue about it. The issue was that no hospital would take a risk, and our local distributor didn't fight it, basically went along with that and had to increase their, their cost dramatically because they were essentially putting in redundant wire that they didn't need to in order to meet the specifications and not Fight it. Okay, so this is the type of thing sometimes you see, and by turning around and basically saying, look, you have to fight this, that you have no choice, I'm not going to allow you not to fight it, you have to fight it, and pushing, we were able to break that requirement. And this can happen because people will try and play around with these false requirements, and if, especially if they do it strategically, they're going to attack your strongest benefits. Okay, and they're going to try and nullify the benefit that you bring to the table, which could make it virtually impossible for you to sell in certain markets. Okay, as long as they're not legal requirements, you have to work towards trying to get past these blocks that people are trying to put in place. Remember, when you're ready to grow your international sales, reach out to us. We can help.
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