To Bid, or Not to Bid: A Stand for Value and Trust in Business

Why does it always have to come down to price alone?

In the world of small business, the frustrations of bidding can feel overwhelming. Recently, we faced a bid rejection from an organization we've proudly supported for years. While I understand the quest for the lowest price—an objective many organizations strive for—losing a bid solely based on cost is a tough pill to swallow, especially in today’s challenging economy. We all work tirelessly to sustain our businesses and seize new opportunities.

It’s disheartening to lose out to a competitor based in another state, one with a presence in 48 states, especially knowing that, as a small business, we simply don’t have the same buying power. I’ve yet to encounter a representative from this company at any of the networking events or meetings—perhaps it’s just a coincidence? Over the years, I have personally prepared and delivered educational presentations to this organization at no cost, demonstrating our unwavering commitment to their mission. We have consistently supported them through donations and have built meaningful relationships with many of their members. Yet, the frustration of the bidding process remains.

Cost is undeniably important, but so are relationships, experience, reputation, and the value of our time and investment. While it may be easier—and more financially advantageous—for us to step back and focus on independent connections, we recognize the need to reevaluate the organizations we align with as a small business competing against larger companies. It’s frustrating to see decisions often reduced to price, overlooking the dedication, communication, loyalty, reputation and culture that truly matter.

On a personal level, we recently chose a residential builder for our new home based on trust rather than bids. We didn’t seek other offers because we valued their experience, business, culture, and reputation, along with the testimonials from their customers and the relationships we've built over time. Even though some subcontractor bids were higher, we prioritized these connections because they align with our values. While it’s essential to remain competitive, we must also acknowledge that every business has unique overhead and offerings—comparing quotes can often feel like comparing apples to oranges.

As a small business, we stand behind our employees and know they deserve a fair wage. As a small business, we are deeply vested in our community and committed to making it better. Studies show that businesses actively engaged in their communities can see a 20% increase in customer loyalty. Additionally, employees who volunteer are 27% more likely to be satisfied with their jobs. This sense of purpose not only enriches their lives but also strengthens the fabric of our community.

To organizations seeking bids: I understand the necessity of gathering multiple proposals, but let’s be clear—our commitment lies in delivering value and fostering genuine relationships rather than simply competing on price. Small businesses are the backbone of our economy, much like the farms that shaped my upbringing. Raised on a farm, I learned the value of hard work and ethics; just as farms have sustained communities for generations, small businesses today are vital to our economic strength. It’s crucial that we support one another to ensure we remain strong and resilient. We take immense pride in the quality of our work and the partnerships we cultivate, and we must stand firm in our identity and pricing to uphold these principles, and the fact of the matter is, not everyone can be your customer.

So, as a small business owner, community leader, volunteer, author, musician, board member, wife, and mother of three boys, I challenge you all to work together to create a community or organization that prioritizes quality, trust, and integrity over mere numbers. This approach may not guarantee every job is won, but it may bring you peace knowing that you are aligned with those who share your values.  Together, we can build lasting relationships that uplift not just our businesses, but an entire community.

In the end, success isn’t just about winning bids—it’s about building a legacy of trust, integrity, and excellence. By supporting one another, we can create a thriving community where small businesses don’t just survive, but truly flourish.

PS, Can you tell I have a soft spot in my heart for small businesses?