The Value of Your Proposals to Your Clients

Why do customers ask us for a proposal when the recommendations we have made in person so obviously make sense? Because the proposal has value for them. For example, a good proposal can help the decision maker to:

• Compare vendors, offers, or prices so he or she can make an informed decision

• Clarify complex information

• Make the buying process more "objective"

• Slow down the sales process

• Solicit creative ideas, become educated, or get free consulting

Comparing vendors, offers, or prices. Are you the only vendor this prospect is talking to? It's possible you are being asked for a proposal so that your recommendations, pricing, and evidence can be compared to a competitor's.

Buying products or services can be tough, especially when the decision maker must deal with an array of options, lots of conflicting claims, and little practical knowledge of the area under consideration. "Getting it in writing" is the traditional way to deal with this problem.

Clarifying complex information. Do you sell something so complex that it would take you more than ten minutes to explain it to your mother? If so, it's possible some of your prospects don't understand it, either. A proposal gives the nontechnical customer a chance to read, analyze, ponder, get help, and eventually understand.

Adding objectivity to the buying process. It seems odd, but some people don't want to buy from people they like. They're afraid that if they really like the salesperson, they will somehow make a bad decision based on rapport or friendship. If that strikes you as a goofy way to make a buying decision, join the club. (After all, wouldn't you rather do business after the sale with people you like?) Regardless, it makes enough sense to some customers and prospects that they will try to create an arm's length relationship by asking you for a written proposal.

Slowing down the sales process. Sales is a little bit like courtship. The very word "proposal" applies to the final stages of both activities. In the early stages of both, the process can take on a momentum of its own. We get excited, we become enchanted with new possibilities, and we rush forward. Asking for a written proposal slows the sales process down. The buyer figures that it will take several days, maybe even a couple of weeks, for the salesperson to put together a proposal, which gives the buyer time to think about this decision calmly, to weigh the options, to determine whether this opportunity will look as good the morning after as it does right now.

Soliciting creative ideas, becoming educated, or getting free consulting. Decision makers face a tremendous number of demands on their time and abilities. They need to know what's out there, who has it, and how much it costs. They need to know if there are new ways of handling old problems. What are the trends in the industry? Who are the new players in the game? It's all a bit overwhelming.

One way to establish a base of information is to ask for proposals. As long as you are honest with the salesperson about your time frame, there is nothing wrong with this practice.

What about clients who issue RFPs or request proposals with no intention of buying anything? They're looking for free consulting, and to the extent you answer all of their questions, you may be giving away the solution. Or the client may solicit bids in an effort to "beat up" the existing vendor. Does this happen? Yes. Is it ethical? No. If you're selling a product, you have wasted time and energy, because you've prepared a proposal for somebody who never intended to buy anything. But if you're selling a creative solution, an idea, a system design, or other intellectual property, you may have lost much more. The potential client may glean enough substance from your proposal that he or she tries to do it without you, using your concepts but developing them internally. Or, even more galling, the client may use your proposal as the basis for soliciting bids from your competitors. This doesn't happen frequently, but it happens often enough that you should be careful.

The important lesson is that you should always do some prudent qualifying before committing yourself to the time and effort of writing a quality proposal. There is no point in submitting to someone who has no budget, no authority, or no real interest in working with you. And there is even less point in submitting to someone who may take your material and share it with your competitors.