Whether you sell furnaces, sports training, legal services or advertising services, its common for prospects to request written proposals.
How effective are yours? Do your proposals help in closing sales — or are they killing sales?
If someone asks you for a quote on a project, you know they’re a qualified lead. They’re interested, and you want to do everything you can to close the deal. You talk to them, maybe meet face to face, and then you put in the time to describe how you’d do the project and what it would cost, and you send it off.
Then what happens? Are you closing 60 to 90% of these sales? If not, do you know why not?
If you’re not closing sales as often as you’d like, it could be that the old standard format you’re using for your proposal isn’t effective and ready to be replaced with one that does a better job of closing the sale for you.
Recently my wife and I decided to replace our 20 year old, noisy furnace and long-dead air filtration system. We wanted to update to a more efficient furnace, given current fuel prices, and to get one that actually filtered the air, given our numerous allergies.
We asked the company that has been servicing our HVAC system for a quote. They came to the house, looked over the system, and sent us a proposal describing the details of the furnace installation and the cost.
The only problem was that the proposal, clearly their standard form, didn’t describe the high efficiency furnace and state-of-the-art air filter we were interested in.
When we looked up the model numbers specified in the proposal, it was clear that the HVAC contractor had included a low efficiency furnace and low-end air filter at a high-end price.
What’d we do after reading this proposal? We started looking for another firm to work with that would sell us what we wanted.
There are dozens of obstacles that can kill a sale, and a misleading or badly done proposal is one of them.
Now I know what you’re thinking, our HVAC contractor might have made a mistake or was trying to pull the wool over our eyes. And either way you could be right, but after reviewing other proposals including ones sent out by my clients I noticed the following structural problem with them all.
Almost every business proposal leads with a description of the project. Is this what your proposals do?
While this is a standard approach and is probably what you were taught to do, it’s the wrong one! Writing a proposal this way won’t help you sell your products or services and can easily kill the sale. When your prospects get your proposal, they’ll quickly scan it to see what they’re getting, then their eye will look for the price and they’ll cringe.
How can you avoid scaring away sales with your proposals?
Begin With A Description of the Problem and Client’s Concerns
If you want to sell the solution you provide, start by describing the problem you solve. Remember that the value of your solution is determined by the scope of the problem.
If you wanted some additional heat in a bathroom you’d get a small portable $49 heater. If you needed to heat your 4,500 sq foot home, you could easily spend over $6,000 and consider it a good deal.
To repeat; the scope of the problem determines the value of the solution. If you want your prospect to understand the value you provide, lead with a detailed description of the problem and their concerns.
How important is it to you to close more sales? How much more money could you be making if 50% more prospects became clients? What’s the biggest obstacle to making it happen?
Most small business owners and marketers use outdated small business marketing tools, including proposals they’ve standardized over the years. These can create obstacles and kill sales.
For example: Here’s what a HVAC contractor might start their proposal with:
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Dear Mr. Cook,
Thank you for interest in engaging Mike Mulligan’s services to update your HVAC system.
Objectives
Based on our conversations and our inspection of your home:
• You want to remove your existing 20 year old furnace.
• You want a state-of-the-art furnace that will maximize fuel efficiency.
• You want to replace your existing non-functional electronic air cleaner.
• You want to minimize your exposure to air-borne allergens including dust, mould, pollen, and mould.
• You want your existing ductwork to be modified to work with the new furnace and air filtration system.
• You want the system thoroughly tested to ensure proper operation of all heating zones in your home.
Value
The value to you of meeting these objectives includes:
• You’ll have more even temperatures throughout your house in both summer and winter.
• You’ll lower your fuel costs by up to $200 per year.
• You’ll breath easier with 99.99% of all irritating allergens removed from your home.
• You’ll have a HVAC system that will work reliably for you for another 15-20 years.
• You’ll be more comfortable in your home.
Project Description
(This is where you’d describe the exact equipment used, the people and tasks involved and any scheduling issues.)
———————
Follow the project description with information about your terms and conditions, then state the price and guarantee.
There is one more key element most proposals are missing; a call to action.
Most proposals include some verbiage on “acceptance of proposal” with a line for the prospect to sign. Some include a note about the price being good for 45 days. 45 DAYS! What kind of motivation is that to sign? Not much!
Give your prospects a reason to take action immediately.
“We want your business and in order to show our appreciation will give you $500 off the project as described or one year of free service, if you call us in the before (2 days from receipt) to schedule your project. After 48 hours the existing price is good for 30 days.”
Want to close more sales? Write proposals that put the price in the context of the problems you solve and include a compelling call to action. With this simple structure, more prospects will understand the value of what you provide and more will become clients.
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