How to Write a Small Business Bid Letter

By Lanee’ Blunt

Writing a small business bid letter requires different things to consider when preparing the bid. Start with an outline this will help you organize information that needs to go into the bid letter.

Writing a bid letter can win you the bid. A purchasing bid letter has to be planned before you begin the initial writing. In most cases the bid will go to the lowest-priced responsible bidder. They are evaluated with no discussion held with the bidders.


Things You’ll Need
Cost of material
Cover reports
Financial statements
Certificates and licenses

Analyze the requirements. Before you prepare the bid make sure you have a full understanding by studying the specifications and requirements to make the purchase.  Examine all the specifications, read the IFP several times.

Write the “Company profile” section. Write about your qualifications and your experience with similar jobs.  Include the bidder’s identification number, number of employees. Tell the evaluators the responsibilities of key personnel and subcontractors.  Add client references.

Write your response. Start the first paragraph with a section about your company. Bids include the experience, expertise, and a reliability section and the method of performance. Tell the procurement staff or the business venture about your organization your experience and your work references or samples of the type of work performed. The second paragraph is the performance section and it should tell how your organization will perform when you buy the business venture, or deliver the goods requested in the bid document. The format is not that important just make sure you have all the information included.

Your bid price should come out of the budget detail, the materials, labor, overhead, packaging and transportation. The price must meet the supplier’s rate of return objectives.

Make sure that the bid is signed.
Do not leave out attachment, for example financial statements, compliance reports, certificates, licenses, etc.


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