What’s the difference between proposals and bids?

Both proposals and tender responses are important forms of sales collateral, but they serve different purposes and are used in different contexts.

Here’s a summary:

1. Proposals: These are documents prepared by a business to present to potential clients. They typically include an overview of the business, the client’s pain points, the services or solutions being offered, the delivery method, pricing, and any financial or operational restrictions (terms and conditions). Proposals are often free-form and allow the business to present their offer in their own words.
2. Tender Responses: These are responses to specific questions asked by a potential client in a tender document. The client sets the agenda and the business responds accordingly. Tender responses might include details about service delivery, cost, any exclusions, and the solutions provided. These responses are often come with a word count limit.

Proposals are more common for smaller organizations or less complex projects, while tender responses are often required for larger contracts or more complex services.

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This article was posted by:

Vicky Poole

Vicky Poole, with 15 years in strategic sales, specialises in Commercial, Government, and Third Sector tenders. Founder of Tender Response, she leads a team aiding SMEs in public sector bids.

View all posts by Vicky Poole