Developing a well-structured RFP that generates meaningful and actionable responses requires a deep understanding of the relocation industry. Without this expertise, organizations struggle to ask the right questions, align the RFP with their culture and business objectives, and effectively evaluate suppliers. As a result, companies often end up with an RFP that doesn't provide the clarity or insights needed for an informed decision.
Suppliers often ask clarifying questions during the RFP process to ensure their proposals are aligned with the company’s needs. If these questions aren't answered clearly and comprehensively, it leads to ambiguous responses and pricing that cannot be fairly compared. This lack of clarity ultimately makes it more difficult to evaluate supplier proposals on a like-for-like basis. A deeper understanding of how Relocation Management Companies (RMCs) operate and price their services can help prevent these issues.
Creating an objective and consistent scoring method is essential for fair supplier evaluation. However, for companies without automated tools, developing a scoring system is a manual process that can be time-consuming and error-prone. This significant time investment can hinder the efficiency and effectiveness of the RFP process, leaving stakeholders frustrated and overwhelmed.
Even after overcoming these challenges, companies often find themselves sitting through sales presentations from a shortlist of suppliers. However, without a structured format that encourages in-depth discussion, it can be difficult to discern the unique differentiators among providers. As a result, many companies end up selecting a provider based on pre-RFP research or an apparent cultural fit during the presentation, rendering the entire RFP process less impactful. Additionally, decisions may be swayed by internal relationships or preferences, further complicating the decision-making process and leading to a less objective selection.
This toolkit has been designed to help you navigate the complexities of bidding for relocation services. It provides a comprehensive framework that includes insights on pricing structures, answers to common supplier questions, scoring methodologies, and a sample RFP template. By utilizing this toolkit, you'll save valuable time and effort while making more informed decisions. Additionally, we also explore alternative strategies for finding the right provider if an RFP is not the best approach for your needs.
When it comes to managing your relocation program, there are two key questions that must be answered to set a realistic budget and effectively compare pricing between Relocation Management Companies (RMCs):
01 How much does a relocation cost?
02 How much does it cost to have someone manage relocation for me?
Let’s begin with the second question, which is more straightforward.
How much does it cost to have someone manage a relocation for me? RMCs primarily generate revenue through two channels: service fees and referrals, with referrals typically contributing the bulk of their income.
All RMCs charge standard service fees to administer your mobility program. This fee can vary depending on the type of program you choose. In some cases, RMCs may even waive their service fees if you structure your program to include referrals, such as a tax-sheltered home sale program. Across the industry, service fees are generally consistent, and they are typically the least expensive component on a relocation invoice. These fees usually account for only 1-2% of the total relocation spend. To help you compare pricing more effectively, we’ve included a relevant question in our RFP template.
Now, let's move to the first question: How much does a relocation cost? To answer this, we’ll provide a sample cost breakdown using a typical move scenario. This will give you a general idea of the most common relocation services and their associated costs. With this information, you’ll be better equipped to make an informed decision when requesting a pricing proposal from suppliers.
When it comes time for the RFP process, we recommend saving the pricing discussion for the presentation phase with your shortlisted suppliers. Use the one-on-one meeting to dive deeper into how the provider operates—specifically, how they vet suppliers, audit services, and invoice clients. After that meeting, ask for a formal pricing proposal that includes a detailed cost estimate based on a specific move scenario and policy tier. While these estimates are still subject to change, they will be far more accurate and tailored to your needs, giving you clear expectations and a better foundation for comparison.
This approach ensures you’re not just getting a generic pricing proposal, but one that reflects your unique requirements and priorities.
Even with thorough planning, suppliers will always have questions about your RFP to clarify details, better understand your program, and inform their strategies. Being prepared for common questions can reduce follow-up inquiries and help you position your responses effectively. It's also important to understand the intent behind these questions—what suppliers aim to learn and how they plan to use the information.
There are two common RFP scoring methods: Simple Scoring and Weighted Scoring.
Simple Scoring example:
While straightforward, the downside of simple scoring is that it gives equal value to all questions, making it harder to assess which answers are most critical.
Weighted Scoring
This method prioritizes certain categories by assigning different weights to them, offering a clearer view of how well each supplier aligns with your needs. It’s often used for larger programs.
Weighted Scoring Example:
Sharing category weights with participants helps them focus on what matters most to you. The downside is the time needed to assign values and calculate responses, but this effort provides more meaningful results.
Best Practices:
This approach ensures a fair and objective evaluation, leading to a more successful RFP process.
Download Mobility RFP Questionnaire Template