The task of writing estimates and proposals is a fundamental Business Practice and one that most business people will have to face at one time or another.
Beyond professional development, this is a task who's importance to the Sales Process cannot be overstated. After all, many of us can recount stories from our own experiences as consumers where a potential sale was lost because a business failed to follow up on our sales inquiry.
Granted, putting together an estimate or proposal involves diligence, with no guarantee the effort will pay off with a sale. Nevertheless, submitting estimates and proposals is the accepted way most businesses get their goods and services into the competitive market.
That said, it is important for businesses of all types and sizes to view this practice as an opportunity to seize "new business", and not as some bothersome and potentially low-yield exercise.
Preparing Written Estimates
The format for estimates usually depends on what is customary for the seller. But regardless of how the estimate is structured, be sure to do the following:
* Summarize the project as agreed to by you and the prospect.
* Use realistic time frames for both scheduling and completion.
* List all materials and their associated costs.
* "Calculate" costs, don't guess. (Labor, Overhead, etc.)
* Spell out any additional costs or fees.
* Prepare the written estimate organized by the above categories.
* Include contact information and a follow-up date.
Preparing Formal Proposals
In content, proposals are "meatier" than estimates, but aside from substance, the major difference between an estimate and proposal is that the former is usually written from the seller's perspective, while the latter is written from the perspective of the prospect.
As you begin drafting a proposal, start by using the estimating steps as outlined above to help you calculate the raw cost data for the proposal. From here, you will need to format the proposal.
Businesses may use some boilerplate for this purpose, but it is important that you tailor the format to meet the specific needs and wants of the prospect.
When finalizing a proposal, ensure the following basic elements have been included or addressed in some specific manner:
* A summary of the issue or problem your proposal will address
* An outline of how your product or service will address the issue or problem
* The qualitative benefits of your product or service
* You or your company's experience and expertise in handling similar issues and problems
* Testimonials and references as to your company's ability to do the job
* Contact Information and a follow-up date.
Regarding writing style, be sure to write clearly, succinctly, and with enough customer-specific language to demonstrate your understanding of the prospect's wants and needs.
In this regard, note that prospects generally view their needs as unique, so be sensitive to this and use the prospect's terminology whenever possible. Simply put, reinterpreting a prospect's wants and needs is not the best way to establish rapport.
Another element you may be expected to include is an Executive Summary. For detailed and highly technical proposals, the need for a summary is pretty much a given. But if you do include an Executive Summary, condense it to a page or two at most.
When all is said and done, the prospect is looking for information to help them with a buying decision, so the more information you provide the better it is for both you and the prospect.
As a final word, be aware that it is common for a prospect to request several estimates or proposals based on different scenarios or circumstances. If this is the case, honor the request in a timely manner and be grateful for the opportunity. After all, it may not come around again.
For additional information, there are many online and desktop resources available on this subject. A quick Internet Search will yield good results for you. To help get you started, check out the related links below.
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