A good friend of mine recently submitted a proposal to a shared client, and when he followed it up with a call to review and discuss a way forward was meet with "so far I have only looked at the price, and I got sticker shock". He asked what sticker shock was, and apparently it is what happens in America when they are looking for a new car - they see one they like BUT then they see the sticker on the windscreen, hence 'sticker shock'. He is now having trouble getting them to read the actual proposal, as they are exhibiting price resistance without understanding what they are getting for the money.
We (PBSL) try to avoid this by explaining to prospects that when we write proposals we omit the price until they (the prospect) have agreed that the uncosted proposal represents what they are looking for in terms of meeting their business requirements.
We do this because, naturally, people tend to look at the price first, and (hopefully) the proposal second, but as my friend found out, if they get sticker shock they stop there!
Having written our draft uncosted proposal, I will call the recipient BEFORE I send it and tell them, or their voice mail, that it is on the way. I then email it with the following words:
“As per my voice message, please find attached our uncosted proposal for your review and feedback. The objective of this approach is to ensure we have aligned our solution with your requirements before we set a price expectation. Subject to that review and any changes you may suggest, we will submit a final costed proposal for your approval.”
The other advantage of this approach is that if you have failed to meet their requirements, you can change them (and the price) without the problem that the old approach creates; that once the price has been revealed it can't be easily changed.
Hope this is useful to all you avid proposal writers.
Brilliant, Chris! Your process of providing an proposal without a price as a first step is something that has never occurred to me despite all my years in sales. In my opinion, the benefit isn't just that one can get the green light so a price can be given, but in addition it adds yet another layer of prospect engagement into the mix. Just when the prospect was thinking he/she could sit back and let the proposals roll in, he is now confronted with the need to communicate additional or clarified needs to the proposal provider.
I'm going to begin using this strategy in my business immediately! Thanks, Chris.
Posted by: Skip Anderson | May 21, 2008 at 08:50 AM