Most salespeople get excited when a prospect says, “Can you get me a proposal?” Beware, this is not only one of the oldest tricks in the book to get rid of salespeople, it’s also one of the biggest time wasters. Before you jump at the opportunity to put together a proposal, review these six rules.
Rule One: Never offer to do a proposal. In the past, you may have thought that getting to the proposal stage was an indication that you were one step closer to the sale. Go back and review your success in advancing past the proposal stage. If you aren’t doing business with 80% or more of the prospects you propose to, you are probably doing proposals inappropriately.
Rule Two: Ask the most important question. Before you do a proposal, ask your prospect, “What would you like in it?” By clarifying, you’ll be able to put together something that meets his expectations. You also may find that by discussing it, your prospect no longer needs a proposal.
Rule Three: Present your proposal. While this isn’t possible 100% of the time, it’s important that you make the effort to get in front of the decision maker(s) to discuss, review or present your proposal. The easiest way to do this is to simply set up a review meeting with your prospect when he asks for a proposal.
Rule Four: Make sure your prospect doesn’t get sticker shock. While your prospect may not know your exact price before getting your proposal, pricing should not be a surprise element in your proposal. If it is, you haven’t done a good job on the front-end. It really doesn’t make sense to spend tons of time on a proposal only to find out that your fee and the prospect’s budget are too far apart. Get that information upfront so you can explore options that will best fit their needs.
Rule Five: Refer to your fee or price in your proposal as an “investment.” You are establishing value for your product or service. Your price should not be perceived as an expense. It’s an investment to help and benefit your prospect.
Rule Six: Don’t reduce fees without reducing value. If your prospect wants to negotiate to reduce your price, you can look at other options if you so choose. Never reduce fees solely to reduce the cost. If you offer a lower priced option, then you should remove product features or services.
You should be offering a fair value for a fair price. There’s no reason why your margins should be sacrificed. If that’s the only way you’ll get the business, it’s probably not a good fit. Ask yourself, “Is this really the kind of business I want?”
Six Rules For Doing Proposals - To learn more about this author, visit Will Turner's Website.
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