[General] latest news! "Lowest bid" or will end, giving conscience business a chance

In recent years, companies in various industries have been shaken by reports of “collapse,” “shut down,” “bankruptcy,” “arrears in wages,” “declining performance,” and “loss.” Due to the overcapacity in domestic production, many companies either have no business or they rely on low profit margins to survive.

In addition to the external environment, the inherent vicious competition is also swallowing up the good conditions of the manufacturing industry. In order to maintain customers and ensure that there is business to do, some companies are not hesitating to sell their goods in a “maintenance” posture, which increases the risk of more small and medium-sized factories going bankrupt.

The bid winner is really starving to death, dying himself, and pitting him! Especially in the environmental protection industry, is it true in other industries? It is worth thinking about.

Low price competition case

It now appears that what is even more frightening than the "closed tide" is "low price competition." "There are people doing business with low prices!"

Competitor A company began to take the relationship route, and touched the owner's preferences. Competitor B company released a lie, regardless of the final owner to kill the price to what extent, this live to pick. We have worked with this owner on three or four projects. When a project just starts to drive, it should be said that tea is still hot and there is a good chance of laughing. Because there are project operations for the time being, so quote everything in accordance with the normal steps, where the shallow depths of water add a little bit of discretion to eat money, it can be said that the quoted price in normal times looks completely normal.

As a result of the first round of parity, Company B’s price is 70% of ours. Colleagues are somewhat inexplicable, and the usual price of Company B is comparable to ours and sometimes slightly higher. Asked B's friend to ask, a lot of people in the original B are in OVER HEAD. No project will be laid off, so B decides to fight back and fights.

During the second round of negotiations, our company directly fell to the price before B. Because the high level said that old customers can not lose. As recently reported, B company won the bid. Reliable information from the owner revealed that the final winning price of company B was probably reduced to 50% of our first quotation.

Is this a concept?

I want to say to my dear client:

The style of life lies in your taste.

The quality of the product lies in your choice!

Only choose right, time will prove your rational and far-sighted!

It's expensive, yes, because it's good, so expensive!

Products are expensive in quality, people are in taste!

The premise of service is profit.

Profit space can be squeezed,

But can't disappear,

Otherwise there is service that disappears along with the profits.

Please don’t overdo it.

Every company needs to survive

You took away the manufacturer's living space.

How to protect service and quality?

To do business is to do conscience.

We would rather explain the price for a while,

Do not apologize to your customers for life because of their quality!

The value of Chinese companies should be upgraded

The minimum tender price mechanism must be reformed

Bidding Background

Tendering and tendering, as an important transaction method, has been widely used in our country. While producing positive results, there are also some problems that need to be solved in the tendering and bidding, especially the misuse and abuse of the lowest bid winning bid, which seriously disrupts the market, Obstructing legitimate competition and reducing product quality will eventually lead to the withdrawal of good people and the situation of bad people, contrary to the original intentions of the “quality and price” and “supply-side reforms” proposed by the national quality power, brand rejuvenation and the “13th Five-Year Plan”. desire.

The misuse of the lowest-bidder method resulted in bidder vicious price competition, prompting some bidders to heal the bid below the cost in order to win the bid. After winning the bid, they used theft cutting, high price claims and other ways to make up for their losses, and some even stopped work and delayed. Complaints and other means threaten the tenderer to increase costs and gain additional profits. These practices will bring great risks to the product quality, project quality, service quality, safety production and schedule of the contract implementation, and will also cause a lot of economic conflicts. The constant occurrence of disputes over the wages of workers and the arrears of contract prices will surely affect social stability.

Especially for the manufacturing and construction industries, the wrong use of the lowest bid winning method will have far-reaching negative effects. Due to the price of malicious competition, the bidder could not win the bid in the normal quotation, which caused some large-scale normative enterprises to lose the trading opportunities, or unprofitable after the low-price bid. Only the capital investment in technical equipment and product research and development was drastically reduced, resulting in the enterprise Lack of development stamina can not improve its ability to innovate. In terms of employment, in order to reduce costs, companies will lower employment standards, reduce investment in employee education and training, affect the improvement of employee quality, eventually stagnate corporate development, and the industry is caught in a quagmire of vicious competition, cancerous market order, and inability to extricate itself from the economy. And social development is not sustainable.

Problems with bidding

According to Article 41 of the "Tendering and Bidding Law" of China, "The successful bidder shall meet one of the following conditions: he shall be able to satisfy all the comprehensive evaluation criteria stipulated in the bidding documents to the fullest extent; he shall be able to satisfy the substantive requirements of the tender documents, and The lowest bid price is evaluated, except that the bid price is lower than the cost."

In addition, Article 29 of China’s Provisional Regulations on the Evaluation of Bidding Committees and Evaluation Methods also clearly states: “The evaluation methods include the evaluated minimum bid price method, comprehensive evaluation method, or other evaluation methods allowed by laws and administrative regulations. Therefore, the evaluation methods used in China at this stage are mainly divided into two categories: the comprehensive evaluation method and the evaluated minimum bid price method.

However, national laws and regulations do not specify the scope and preconditions of the “approved minimum bid price method”, nor do they define the specific circumstances and standards of “bid price below cost”, which leads to the vast majority of technical In order to maximize the rate of capital saving, reflect the leadership achievements, misuse and misuse of the lowest bid winning method, and when applicable, deliberately ignore the “substantive requirements of the tender documents”. The conditions shall be measured on the basis of low prices as a measure of the performance ability of all bidders. Once the price of the bidders is found to be too low, the price determination procedure will not be activated, and the phenomenon of “bid price below cost” will be ignored, resulting in a large number of low price bids. , leading to bidders vicious competition at all costs.

The normal price is a respect for others' innovation and labor, and it is also respect for oneself. The malformed price reflects the abnormal supply and demand relationship, the rule of law environment, and lack of credit. The bid for the lowest price seems to be good, but it gradually erodes the Chinese manufacturing industry's pursuit of quality, innovation, and appropriate industry concentration. It also makes the government and the company use it as a talisman of nominal compliance, without considering The possibility and corresponding consequences of actual compliance have made today's economic growth gradually declining and the shrinking of all industries. Today, prices are not the lowest, but only lower.

The two associations' opinions and suggestions on bidding

Establish and improve laws and regulations

“The cancellation of product tendering adopts the “Awarded Minimum Bidding Price Law” and recommends the adoption of the “Average Tendered Average Price Method”, in which the scores of technology, service and brand are not less than 50%.

Form an industry cost price system to prevent malicious low bids

For the industries where malicious low-price bidding is more obvious, according to the current overall market conditions, combined with relevant government documents and relevant experts' experience, the government or industry organization shall establish the bidding cost guidance price, strictly stipulating that the bid price should be after the lowest price and the highest price are removed. If the percentage is lower than the average bid price, it shall be deemed as lower than the cost price as the basis for the price assessment of the entire bidding project.

Establish a credit system and improve the punishment mechanism for dishonesty

At present, due to the imbalance between supply and demand, the production capacity is generally a serious surplus. During the tendering process, market access should be strictly controlled, and the market clearing mechanism should be perfected. There are affiliate bidding, illegal subcontracting, illegal subcontracting and collusive bidding, and false bidding. Bidders who engage in fraud and other acts, as well as bidders who have committed serious quality and safety accidents and have bad bids for breach of trust, default and breach of trust, bribery and bribery, as well as illegal institutions and personnel, must strictly deal with the law and restrict entry into tenders and bids. In the market and regulatory areas, it is also recommended that priority should be given to those creditworthy and creditworthy creditworthy units, thereby stimulating the sound development of the industry, the healthy development of society, and realizing the great Chinese dream.

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