- Put out a tender for a major Easter Event.
- Accept the lowest tender and then demand the winning company cuts the tender price by around 25% to R2 million.
- Take months and months to pay the pittance.
Just for the record – thinking like a businessman goes like this:
- A far more effective tender would have stated; “The municipality has R2 million to spend on an event – send us proposals based on your best version of this event given our seed capital injection“.
- Pay a substantial amount upfront, ask for performance guarantees, set measurable outcomes, give realistic time scales, monitor and measure.
Based on the above companies could have secured sponsors to boost their offering and win the tender by offering a R5m event for just R2m.
It is called leverage, Roland. Like buying Italian shoes for the price of Bata Toughees!
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