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With very few exceptions, all businesses need to make proposals
or tenders. Even more important is to have them accepted because
it will have cost time and, therefore, money to put them together.
This guide can only be general and is not intended to be exhaustive.
A tender or proposal contains information that is put in front
of those requesting it. The word "Quotation" is sometimes
used instead of "Tender" since it is mainly to do with
the cost of goods or services. An "Offer" indicates
a readiness to do something. It is important to remember that
if work (e.g. access to a site), supply of goods, or information
depends on others it should be highlighted. "Proposal"
is the word that means both a tender and an offer.
Tendering, or making a proposal, is one of the steps in the
sales process. One working definition the sales process is "Getting
decisions in your favour". Since the sales process is not
complete until all rightful payments are made and potential liabilities
have expired, the sales process can last years.
To have a proposal accepted it is vital that the customer
has all the information required to be able to say "Yes".
Proposals, therefore, are most commonly in writing, but could
be verbal or in some other medium. The use of E-mailed submissions
is now common, although there can be doubts about security.
Organisations that are sophisticated, large, bureaucratic,
or are publicly funded will generally have a tender document
with specifications and schedules. The tenderer, will be in competition,
normally. If not, it will still be a requirement to complete
the tender document in full so that it can be evaluated. This
will often require such tedious information as qualifications,
C.Vs., lists of proposed sub-contractors, references, current
contract commitments, and a demonstration of relevant experience
or reference lists.
Failure to comply, or the use of the tenderer's own preferred
submission document, will mean probable failure. In other words,
the customer will not have all that is needed for agreement.
Once a routine is established as a preferred supplier the situation
eases.
Smaller organisations (Small and Medium Sized Enterprises
generally) vary widely in their approach. Often the individual
seeking the proposal is not sure exactly what is wanted and will
need help to clarify his or her understanding. A further complication
is that others may have to be convinced before a contract can
be agreed or a purchase order placed. The successful tenderer
will have discovered these things, usually by careful questioning
prior to making the proposal. Most of us will have received proposals
that have completely missed our need. To be successful, do not
waste time making a standard offering when the customer is only
going to buy one that suits him or her.
Nowadays, customers do not just expect good value in what
they buy they have expectations. The expectations are rarely
if ever expressed. Nonetheless, it helps to meet expectations
if the proposal clearly has the four main elements:
What is in it for the customer?
What objective (the customer's) will be met?
What advantages will the customer have by using your services
or taking your goods?
What financial (or emotional) benefits will the customer gain?
On the fourth point it could be fear, necessity, or comfort that
the prospect wants, e.g. refinancing, Health & Safety, guaranteed
delivery, and so on.
If goods or systems are being offered, continuing support must
be added to the list.
Whatever kind of goods and services are being proposed, there
needs to be clarity and simplicity in the written content. It
is always better to use short sentences and short words. Pictures
and diagrams are helpful too. Often a relevant covering letter
can be most effective, providing there are enclosures giving
the detail. Of course it is sometimes difficult to escape technical
words completely, but it will always be better to use words that
are understood in the customer's business rather than the proposer's
business. In living and working memory phrases like "We
thank you for your esteemed enquiry of 25th ult" have been
used avoid them. The customer may well laugh at them.
Finally, there needs to be something in the proposal that
calls for action by the customer to trigger his or her agreement.
It must not be a trick such as a make-believe imminent price
rise. It could be a product run-out or the need to start very
soon to meet a completion deadline given by the customer. Presenting
the proposal face to face at a pre-arranged meeting is likely
to be the most powerful way of clinching an agreement (note recent
BA advertising).
For additional help or information contact David Miller of
Rellim Associates. E-mail dwmiller@rellim.co.uk
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