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Home arrow Business Proposalsarrow Scorecard[6]: Cost

Scorecard[6]: Cost
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Wednesday, 20 February 2008
This is the sixth Business Proposal Scorecard(Cost).
Main focus: Deliver High Value
 
    Cost is always a major issue with proposals – potential clients need to feel tour proposal is worth the money, lower-priced competitors often bid against you, and clients may not have enough money in their budget to pay for the proposal. I believe you should write every proposal as if there will be a lower-price proposal presented and you need to counter that lower-cost proposal by demonstrating that your proposal delivers extra value for the price to the potential client or partner.
    You sell value three ways in a proposal: one, you closely meet the client’s needs and goals; two, you provide extra features that help the client meet its goals; and three, you have the expertise to meet the client’s needs. You’ve made these points in earlier power, but you want to state them again with the price to reinforce that your proposal is an exceptional value for your prospect.

Power Paragraph: Element of the Power Paragraph

First goal: State the cost of the proposal.
    People receiving proposals don’t like to dig for the proposal costs. Be straightforward and up front in cost sections of the plan. Also include a cost chart if the proposal contains several options of cost components.

Second goal: List the client’s expectations regarding goals.
    Effective proposal writers think in terms of their client’s goals and expectations for results. Those are the top two items on the prospective client’s agenda. When listing the price or proposal costs, always tie them back to the client’s goals and then show that the proposal meets or exceeds the client’s expectations.
    If you can’t meet the client’s expectations, don’t make the common mistake of listing what you can do, which is an effort to control the client’s expectations. The prospect will just be disappointed in your proposal and will be unlikely to buy. Instead, before doing the proposal, tell the prospective client you can’t meet the expectation and why and see if it is willing to modify those expectations. That way the client will get a proposal that meets its revised expectations.

Third goal: Mention the extras that exceed expectations.
    Clients like suppliers that work extra hard for them or understand their goals and go above and beyond the clients’immediate request to help them meet those goals. If you are offering extra work or services as part of your proposal, be sure to list them here.

Conclusion: Explain that your proposal is a perfect fit.
    The perfect phrase to conclude your cost power paragraph simply explains why your company is the perfect solution to the client’s needs. A perfect fit makes your price secondary to the performance your company is offering. That is the crucial image you want to leave with the proposal reader – confidence that you will get the job done right, which is , in the end, what produces your proposal’s high value.
Last Updated ( Friday, 29 February 2008 )