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Writing Sales Proposals

In this section we will look at the sales proposal in written form. The material presented here is a section adapted from a sales course I have run for several years, tailored specifically for the IT industry.

Proposals take a variety of forms, but they have one thing in common. A proposal is your offer to sell to your client. Their choice is to either accept or reject your proposal. Timing plays an important part of the sales process. The timing of the proposal must match with the willingness of the client to purchase.

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Most of the information presented concentrates on written proposals, provided in response to a specification (which you might well have had to determine yourself through discussions with your prospect). The proposal may take the form of a simple letter, or be fully blown tender response. In my opinion, the simpler the proposal, the more likelihood of winning the business.

Proposals are often prepared in response to a Request for Proposal (RFP). An RFP is a formal request to vendors for a proposal of products and/or services, and will usually be some form of specification. The specification details what it is that the client requires of the supplier. Specifications are often written by external consultants.

The RFP might be for example advertised in news papers andto all comers, or it might be private.

Whatever the form of the RFP, preparing a proposal is usually best organized as a project. It also needs to have a single person managing the proposal process. Choosing to respond to an RFP is a serious decision and as such the project plan provides an opportunity to detail the resources and time frame requirements. It needs to be signed off by management and have agreed milestones. At each milestone the decision to continue (or not) with the proposal process needs to be made.

There is really very little difference between preparing a written sales proposal and making a presentation face to face with your client. The only difference is the form that it takes. For some sales staff a written proposal gives them an advantage. It allows the opportunity to carefully and clearly detail exactly what they have to offer and to present their organisation and offerings in a very positive light. And let's face it, not all presentations go well.

 
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The best proposal you can make is to formalize the verbal agreement you've already reached with your client. If you like the deal has already been done but the paper work needs to be completed.

But even if your proposal takes the form of multiple volumes of information, the proposal itself should be summarized in a covering letter. The covering letter summarizes the product/services, the bottom-line price and the delivery dates.

Request for Information

To avoid the work involved in evaluating large numbers of proposals, some organisations publicly issue a Request for Information (RFI). Some do this on a regular basis, perhaps annually or biannually.

The responses to the RFI allow the organisation to cull the number of firms that they might want to do business with, and are usually followed a few months later by an RFP being issued to those companies that have passed the grade with their response to the RFI.

An RFI will usually request basic information from prospective vendors. In simple terms the organization wants to know, what respondents sell, their ownership and information about financial well being, locations and staff numbers.

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