MESOs Template for RFPs & Sourcing

Quick answer: This post provides a practical template for implementing Multiple Equivalent Simultaneous Offers (MESOs) in RFPs and sourcing negotiations. By using MESOs, you can enhance your negotiation strategy, create value for all parties involved, and streamline the vendor selection process.

Understanding MESOs in Negotiation

Multiple Equivalent Simultaneous Offers (MESOs) is a negotiation strategy where a party presents several options that are equally attractive but vary in terms of specifics to the other party. This method allows negotiators to gauge preferences, refine their proposals, and create an environment for collaborative problem-solving.

Benefits of Using MESOs

• Flexibility: Provides room to maneuver based on the other party's responses.
• Information Gathering: Helps identify the priorities and preferences of the other party.
• Value Creation: Facilitates win-win outcomes by presenting multiple appealing alternatives.

When to Use MESOs

MESOs are particularly useful in RFP and sourcing negotiations, where multiple suppliers are vying for the same contract. By presenting MESOs, you can effectively manage supplier responses, align their offers with your needs, and foster competition.

MESOs Template for RFPs & Sourcing

Step-by-Step Guide

1. Identify Key Variables: Determine the critical elements of the deal you want to negotiate, such as price, delivery time, quality, and payment terms.
2. Create Options: Develop three to five different offers that vary in the key variables but have similar overall value.
3. Present Offers: Share the MESOs with potential vendors. Ensure they understand that they are equivalent in value but differ in specifics.
4. Gather Feedback: Ask vendors to rank their preferences among the offers. This will provide insight into their priorities.
5. Negotiate: Based on the feedback, refine your offers and proceed to final negotiations with the most promising vendor.

Example Scenario

Imagine you're a procurement manager for a mid-sized tech company looking to select a vendor for cloud services. You’ve narrowed down your choices to three providers. Here’s how you could structure your MESOs:

• Offer A: $50,000/year for a 99.9% uptime guarantee and 24/7 support.
• Offer B: $45,000/year for a 99% uptime guarantee but with additional benefits like quarterly performance reviews.
• Offer C: $55,000/year for a 99.95% uptime guarantee and customized integration support.

After presenting these offers, you ask the vendors to rank their preferences. The feedback reveals that uptime is the top priority, helping you refine your negotiation strategy.

Practicing MESOs with AI Prompts

Learn more about our AI negotiation co-pilot.