ANDERSON, Ind. —
The word “proposal” can convey myriad meanings. “Have I got a proposal for you!” might make you run the other direction. “Please review and sign this proposal” leads one to ask, “How much?” and “Do you think that she’ll get a proposal this weekend?” can invite speculative conversation (also known as gossip!)
There is no “one-size-fits-all” approach to submitting a business proposal. Sometimes a customer calls in and wants a proposal immediately. Other times, a business is invited to participate in a formal “request for proposal” process. In either case, a customer-focused proposal can increase the odds of gaining new business.
Think of a proposal as an opportunity to differentiate your business from its competitors. What “pain” does the customer feel and how is your business uniquely positioned to address his or her pain?
If a customer requests a price for a new cooling system on a 90-degree day, it’s pretty easy to diagnose their pain. Your competitors are probably thinking of similar solutions as they prepare their proposals. Don’t miss the opportunity to differentiate by asking questions.
Does the customer have allergies? Are they concerned about fluctuating utility bills? You’re not just selling them an air conditioner, but better home comfort and energy efficiency. These questions position you as a consultant and might result in additional sales.
As you prepare your quote, include points of differentiation. Have you received industry awards for excellence? Are your employees certified? Do you offer extended service hours?
Proposal presentation also matters. Is your quote sloppily scrawled on a generic form, e-mailed in an Excel template or presented in person with a free consultation? The customer may prefer the efficiency of an e-mail quotation, but let him or her decide. Be sure to follow-up with the prospective customer after submitting your proposal, to answer any questions.
It might seem that service businesses would naturally strive to provide a high level of personalized service when submitting proposals. I recently found this isn’t always the case when I went insurance shopping. After contacting an agency for a “personalized quote” I received a proposal with 120 different options sent via e-mail.
The electronic insurance proposal created a state of analysis paralysis. While choice can be a good thing, too many choices become counterproductive. Few people have the patience to review and consider 100-plus options. Keep your customers’ time in mind as you prepare a proposal.
Don’t be afraid to give something away. I recently won a contract for a consultative workshop on marketing plan development, due to the fact that I submitted an agenda along with the proposal. Instead of simply stating a fee, my proposal shared what participants would learn and provided an hour-by-hour curriculum overview.
Finally, whether you win a proposal or not, ask the customer to provide feedback. Ask who they selected and why. Request feedback on what they liked or disliked about your proposal. Resist any temptation to criticize their choice; but learn from their feedback and apply their insights to your next proposal.
Susan Miller is owner of Ewing Miller Communications, an Anderson-based marketing firm. Write to her at susan@ewingmiller.com.
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Susan Miller, columnist for THB. John P. Cleary
Discussion
Susan Miller: Prepare a more powerful proposal
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