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Why tenders are a good way to make money

Companies and sole proprietors are hesitant about procurement portals and tenders, in particular, because the processes seem complicated, lack experience, or some have a biased negative attitude. In the article we tell you why you should not be afraid of portals, and dispel some myths about tenders.

The tender sites are open around the clock. For example, you sew overalls for construction, you have a regular customer. But now the project is completed, the client has moved to another region for a new project or has suspended operations. You need a new source of income. In this case, the purchasing portal can help you find a new customer or even several, because several companies can search for your products at once. Tenders are a constant source of additional sales.

The Ministry of Finance of the Republic of Kazakhstan has amended a number of orders aimed at stimulating domestic production. In particular, amendments have been made to the procurement rules of national companies. Domestic producers now enjoy privileges in quasi-public sector procurement: 

  • The customer pays a mandatory advance of 30% after the conclusion of the contract.
  • OTPs are exempt from the following types of collateral: securing the performance of the contract, securing the advance payment, as well as the amount of collateral in case of anti-dumping measures.
  • Penalties for improper performance of contractual obligations are reduced from 10% to 3% of the contract amount.
  • OTPs can conclude offtake contracts in procurement using a single source method.
  • Priority in the purchase of goods, works, and services is given to domestic producers.

By the way, the Eurasian electronic portal has been brought into full compliance and is regularly updated in accordance with the legislation.

There is a myth that the winners are most often those who have been working in the field of tenders for a long time and know secret life hacks. But that's not quite true. For example, there was one case on our portal when a supplier contacted support. He had technical difficulties with the application, and the deadline for submission is already in the morning at 9:00. The managers promptly consulted, the supplier managed to submit an application and eventually won the lot, although technical support simply suggested which buttons to press.

Chat with the supplier in the official Mitwork Instagram account

Procurement portals usually have a knowledge base or background information. Maybe even video instructions. In any case, you can contact technical support.

A portal is a way to sell long—stale goods. For example, a company has an old unsold product in its warehouse that takes up space. If you suddenly find a lot on the portal for the purchase of your product, then there is a chance to apply for a lower price and win. True, the difference between the planned and the dumping price will have to be transferred to the customer's account, but these are refundable funds. Therefore, it is better to sell at least at any price than to send the goods for recycling and still pay for it.

There is a myth that it is better to submit applications at the last moment, an hour or even five minutes before the end of the application process. Experienced contractors believe that this is better, because price offers can be compromised, and competitors will simply apply for a couple of tenge cheaper and win the competition. But this is not the case.

For example, on the Eurasian Electronic Portal, all price offers are encrypted until the moment of opening. This means that no one will be able to spy on and pass on the price offers from suppliers to others — this is technically impossible. No one sees the price offers: neither other suppliers, nor customers, nor even the administrators of the portal. Autopsy reports and outcome reports are publicly available on the portal. You will see who won the purchase and at what price, but only after the opening. Any corruption in the CES is technically impossible. In addition, the portal has passed the information security certification in the State Technical Service of the National Security Committee.

Large holdings and private organizations that are widely known in the country carry out purchases on the portals. Suppliers can add large national companies to the portfolio, which can work as an advertisement for future customers and strengthen the company's image in the market. For example, Baiterek JSC, Otbasy Bank, Transtelecom, Air Astana, KASE Stock Exchange and other well-known companies are purchased on the Eurasian electronic portal. Natural monopolies that may be known in certain regions carry out purchases in the CES.

Major customers of the Eurasian Electronic Portal

  • Technical support on the portals helps you deal with technical issues and functionality.
  • Some purchase portals have free pricing plans.
  • When participating in procurement, the legislation of the Republic of Kazakhstan provides benefits for domestic producers.
  • Thanks to e-procurement, you can officially become a supplier to large national companies.
  • In e-procurement, there is always demand from different business areas.

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