If you’re selling complex solutions or consulting, you’re likely designing and presenting proposals as part of your sales process. Would you be surprised to know that over 50% of proposals don’t win the business?
Modern selling requires us to think beyond features, benefits, and pricing that are in most proposals.
Proposals are an opportunity to take you’ve learned about the client’s business and position how you and your firm are the best choice to help them realize outcomes and value, from their perspective. Proposals are an opportunity to differentiate.
In this article, I share some do’s and don’ts for your proposal approach that will help you stand out, rise above your competitors, and win.
- Don’t make your proposal a resume of your firm’s capabilities.
If you were to take the logo off your proposal, would it look like your competitor’s? Most proposals are full of information about you and your firm, almost reading like a resume. Proposals tend to be inwardly focused on us and our solutions, rather than outwardly focused on the client and what they want to most accomplish.
Instead, reverse the order of focus. Begin with the prospect’s outcomes and the value created in getting to those outcomes, and you’ll stand out. You’ll accelerate trust, because your prospect or client will view you as their strategic problem solver. They’ll clearly see that you understand their business and goals, and that your proposed solutions align with them.
- Don’t oversell and overcomplicate.
There’s a quote from Richard Branson that captures this concept: “Complexity is your enemy. Any fool can make something complicated. It is hard to make something simple.”
A strong proposal simplifies the complex and provides clarity. It tells the story in as concise a way as possible. Our clients don’t have hours to read proposals. Anything we can do to make their life easier will help us stand out.
Simplicity helps your prospects and clients see a clear path forward. It gives them confidence that you’re the one to help them get there. When you oversell and overcomplicate, you risk the decision being delayed. Or worse, you risk them sticking with the status quo and making no decision.
To avoid unnecessary complexity, make sure each element of your proposal clearly refers back to creating their outcomes and value.
- Don’t negotiate price as the first option.
I was advising a seller who had recently won a new engagement. But before that engagement contract was signed, this seller’s new client had one final ask. They requested a fee reduction of 20%. My client met them halfway and reduced their fee structure by 10% — without any changes to the original solution. The danger is this becomes the starting for every new engagement; the client will be conditioned to request future fee reductions. Plus, the contract value was significantly impacted, and without any changes to the solution or workload. This erodes value and profits, and it can ultimately hurt the relationship.
Fee concessions should be used rarely and strategically. The first option I recommend is to understand the motivation behind the request. You may ultimately need to negotiate the solution, and not simply the fees. If you’re ever asked for a fee concession, or to quote a price on the spot, your first reaction should be to mentally stop. I might say something like, “I’d like to get your perspective in a little more detail, and then we can work through what our options might be.”
Now for three proposal do’s.
- Do uneven the playing field.
Your sales process and proposal should aim to uneven the playing field and set you apart from your competitors. Making the playing field uneven isn’t about doing anything that lacks integrity. It’s thinking differently, anticipating what a competitor might do, or paying attention to details. In one proposal situation I requested interviews with the decision makers and influencers. I was granted those interviews. My competitors never thought to make that request, and consequently I was better able to position outcomes and value – and win.
- Do use the Rule of 3.
You will improve your odds of winning with three proposal options that build on one another. Too many option choices can introduce complexity that risks turning off the buyer. The Rule of 3 shows our ability to understand outcomes and value in the eyes of the buyer. When a buyer can’t see and collaborate on a clear path forward, you will stall your momentum.
- Do find your true north – outcomes and value.
Can every solution element of your proposal point to the outcomes and value and the client is looking to accomplish? If not, you’ll need to revisit and revise. Know your goal for the proposal. In some cases, your goal is to close on that proposal and next steps. In others, you may be looking for collaboration, and the proposal is the natural progression. If you can keep to the true north of outcomes and value, before introducing solutions, you will create a standout proposal that wins.