I have been glancing through an awful lot of proposals recently, for a number of initiatives we have coming up and I have to tell you that the one word that comes to mind is…shocking!

A professionally prepared proposal – or as me learned colleague Stone Payton calls it, “A Recommendation Summary” is an essential part of the overall sales cycle and is often the only way some members of the customer’s decision making unit (DMU), find out about you, your company and your proposed solution. If you fail to adequately represent what you have to offer, all of that time invested in first locating the opportunity, initial meetings, qualifying etc, will have been totally wasted.

Here then, are the essential ingredients of a professional proposal – in my opinion.

The Contents:

A well laid out Contents page shows how your thoughts are organised and supplies a ready guide to your in-depth review of the selling argument.
If your document is so short as to not require a contents page, then you are showing how little information you have.

• The objective

• The current situation

• Current constraints

• Recommended benefits

• Recommendation of products

• The final justification

• Supporting documentation:

 - Product guarantees

 - Service information

 - Cost breakdowns

 - Third party references

 - Training

 - Timetable for implementation

 - Appendix

The Objective:

An objective is a statement that can be looked at in terms of measurable change once the decision is taken. If your objective offers no change from the present situation then this is not an objective at all.

The Current Situation:

A clear statement of what is currently taking place within the prospective customers own work environment.This should cover equipment, volumes, work practices and anything to do with the department or departments that are involved.

Current Constraints:

As with an explicit need, a clear statement of desire to solve a perceived problem, the listed problems should be the statements of the decision maker and not your own.You must gain the agreement of the decision maker as to the exact wording of the explicit need so that it is their statement and not your interpretation.

Recommended Benefits:

This is not the products or the service!It is what the total package will do to resolve the existing problems. It is more than likely that issues such as service and finance may play a major role, perhaps even customer training.

Recommendation Of Products:

This is the product or products that match the criteria that you have set for the solution to be effective and should describe clearly the facilities that match the solution.

The Final Justification:

The total cost of the recommendation can be summarised first, followed by a statement of what is being offered into that overall cost.It may be helpful to then break down, in simple terms, how that cost is arrived at.Unless you have previously agreed the terms and cost of trading, it hardly seems worth the effort when the customer might object. Agree terms that will satisfy the decision maker before you put your selling argument at risk.

Supporting Documentation:

Back up your arguments with any guarantees or third party references that support your claims.Remember it is likely that other people will be consulted in the decision process and your document will become the sight-seller in the hands of an inexperienced salesperson. Give them as much support as you can to back their case.

What Functions Do Proposals Perform?

• An organisational tool that provides a complete listing of all buying reasons: Full justification.

• A statement of your professionalism – You are a consultant.

• Written support of your verbal claims.

• A selling tool: A proposal sells when you are not there.

• Provides firm price commitment.

• Proposal = A Closing Tool

Have Proposals Become More Important Over The Years?  Yes… Yes…Yes…

• Internal justification process is more complicated.

• The decision maker usually is not the primary contact person.

• Increased professionalism (O + M, Purchasing, Financial Managers).

• Shift in competition

• Volume – Segments

In Summary: What Should Good Proposals Contain?

• Covering Letter

• Introduction

• Objectives

• Current System: Constraints

• Recommended System: Benefits

• Proof: Current System Costs & Proposed System Costs

• Investment & Pay Back Periods

• Timetable For Implementation

• Summary & Conclusion

• Quotation & Enclosures
Hope all of that helps!!

 

Today’s News: And here is a message from another learned colleague, Ken Thoreson:

Join a select number of sales leaders to listen, learn and actively participate in The Sales Leadership Summit November 11 and 12, 2009, at the Hilton Garden Inn in Duluth, GA  (just north of Atlanta). PDF for information

The Sales Leadership Summit is being hosted by Ken Thoreson, President, Acumen Management Group and Frank Chamberlain, President, Resource Technologies, Inc.  Ken and Frank bring a combined 50+ years of on-the-street sales management experiences to clients across North America and Europe.

The Sales Leadership Summit will begin at 1:00 PM on Wednesday, Nov 11th and conclude at 5 PM, Thursday, Nov 12th, 2009.  This will allow you to get in and get out with only one night’s stay and minimize your time away from your sales team.  Seating & rooms are limited. 

Make plans today to attend this powerful sales development program. This is your opportunity to leverage the sales leadership skills and experiences of some of today’s top sales executives in order to insure your sales success.

Topics covered include:

Sales Leadership
Sales Plan Development
Sales Compensation Plans
Coaching Your Team
 Sales Strategy Sessions – Case Studies
Building Predictable Revenue
Motivating Your Team to Higher Levels
Re-tooling Your Sales Team

PDF for information

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