Manufacturers Should Never Bid Direct (with a Few Exceptions)

Manufacturers Should Avoid Bidding Direct (with Exceptions)

By John DiPisa, Founder and CEO, Bid Desk Analytics –

Government contracts are a safe, lucrative option for manufacturers that help to reduce dependency on the ever-changing retail sector. As a manufacturer, when you become aware of an upcoming state, local government or school purchasing contract or bid, there are pro-active steps you can take to secure that business – even for multiple years. Bidding directly on it, however, is not one of them.

Here are the top reasons why you should avoid bidding direct:

  • Manufacturers, by nature, offer a limited selection of product. Government agencies, however, often require (or at least prefer) a broad selection of product to be serviced by one or several vendors.
  • Dealers, by nature, offer a broad selection to service bids and normally avoid manufacturers that try to bid direct, which can often undermine the dealer’s bid pricing on that brand.
  • If there is a dealer/manufacturer relationship on bids, the dealer often stocks much more product than is delivered on the bids, and services its private sector business with the manufacturer’s brand.

With more than 90,000 purchasing entities nationwide, the $1.5 trillion state, local and education government contract market is rife with opportunity, but you must know how to navigate it. For years, Fortune 500 companies have trusted Bid Desk Analytics to strategically – and profitably – secure contracts with state and local government, k12 public school districts, higher education and cooperative purchasing organizations in the United States.

To learn more, contact us. We would be happy to give you a no-obligation demonstration of our live data feed of comprehensive competitive intelligence.

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