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~~~Valuable Time Management and Customer Qualification Tips~~~
Avoid Wasting Precious Time
on Unnecessary Proposals
Many of you have a sales process that often requires a formal proposal in order for a prospect to become a customer. And if you’re like me, you’ve been burned in the past by someone who you thought was a hot prospect, consequently you jumped through hoops for them to crank out that detailed proposal full of price quotes, charts, graphs, and glowing testimonials , only to call back and have the wind gut-punched out of you by a prospect who said, “We went with someone else, thanks anyway.” Or, “We decided to hold off.”
I want to help you minimize, if not eliminate, the time -- time that could be more productively used with other real prospect and customers -- and expense you spend on unnecessary proposals.
Even with boilerplate templates on word processing and contact management computer programs, complex proposals can take hours--maybe even days in some cases--to prepare. If your bids or quotes are relatively simple and don’t gobble up huge chunks of time, it’s still time that could be spent more productively. Therefore it’s essential that you invest your valuable time only with people who have the interest, need, authority, money and intention to buy. And, ideally, you want to do everything you can to ensure they buy from you. Here are ideas to use with your own proposal-writing.
1. Beware of browsers who are only looking for
multiple bids.
These are shoppers who contact you, sometimes
mysteriously appearing out of nowhere, and seem more concerned about how soon
you can get them a proposal rather than its content.
Their first words are, “I understand you sell _____, and I’d like a proposal from you.”
Rookie sales reps (those greenhorns who haven’t yet been burned by this type of shopper and naively get giddy about the “hot prospect”) reactively ask only the most basic questions about what the caller wants a proposal on.
Veterans, however, treat these calls with guarded optimism, tinted with a hint of skepticism. They ask plenty of questions to uncover a hidden motive, if one exists. That’s because they know these callers often have another favored supplier in mind, maybe even chosen, but because of corporate policy or even for regulatory reasons, they must have another bid in hand.
Beware of vague answers regarding the real need behind their request for a proposal. When multiple-bid-seekers are questioned thoroughly, they get flustered and annoyed. The acid test is determining the precise criteria upon which proposals will be judged, and how a decision will be made. Ask them,
“If I do submit the best proposal, measured according to your decision-making criteria, will I be the one you select?”
If they circle around a direct answer like a plane in a holding pattern, hemming and hawing, you’ve got a pretty good clue about their motivation. I’ve directly asked,
“Has this decision already been made?”
If it has, this gets it in the open, and if you think it’s worth your while you can question their choice . . . perhaps finding they’re now more relaxed about giving you better information about their real needs.
Other options include flatly telling them you’d prefer to not bid on this project, but would like to be considered for a future opportunity where the selection hasn’t already been made. Maybe you would chose to appease them by sending out a fill-in-the-blanks proposal with little effort on your part, just to get your foot in the door for the future.
2. Don’t be used as leverage in a pricing battle
with his present supplier.
As a variation of the previous point, a
prospect wants your bid or proposal to hammer down the price from his present
vendor. The tip-off is the person who immediately wants your best price at a
specific quantity. Again, these folks get restless when you slow them down and
ask questions about their business, specific needs, etc.
After their request, tell them you’ll be happy to give them the best price possible, and to do so, you’d like to learn more about their situation. If they cooperate, they might be a good prospect. Otherwise, they could be leveraging. Sure, quote them a price by phone, but don’t waste your time laboring over a formal proposal.
3. Don’t be a fountain of free education.
And
granted, some of these folks might ultimately buy from you, but they likely do
not warrant a formal proposal now. Your best move in this situation is to ask
direct questions regarding their intention to purchase, and then learn their
time frame:
People new to an industry or job, or those who are in the initial research
stages of a future purchase might want to pick your brain and then get a
proposal to educate themselves. Guard your time jealously. Often people will get
free schooling on a product from a full service supplier, only to make the
purchase from a discounter. For example, consider the case of a traveler wanting
information on specific flights and times from a full-service travel agent, only
to go online to buy the ticket from www.CheapestTickets.com .
“Have you decided that you will eventually make this
purchase?” “What is your time frame
for implementing this program?” If they are short-term specific, you
could have a live one. Otherwise judge their potential accordingly, and
determine how much free info you’re willing to invest in them today.
4. Don’t mistake mild interest as a proposal request.
“When do you plan on buying?”
Again, the sales newcomers, and those who subscribe to the “quantity is
better than quality” myth are most guilty of this mistake. When a prospect says,
“Oh, OK, send a proposal. We’ll take a look at it,” that has about as much of a
chance of success as a child’s request being granted when a parent says, “We’ll
see. Talk to me later.” There’s a huge difference between someone who says
they’ll buy, and the person who will allow a proposal to simply enter his
mailbox.
The Best Proposal Philosophy
Years ago as a sales
neophyte, I used to crank out proposals with the speed and quantity of USA Today
putting out newspapers. Experience is expensive tuition in the School of Hard
Knocks, and since then I’ve adopted a philosophy that has served me very well,
saving loads of time and reams of paper, while raising my proposal success rate
to over 90%. (And I haven’t even talked about what that can do for your morale!)
Perhaps you can use it too. I view my proposals more as “Agreements”
than documents that will be paraded along with many others before judges like
early contestants on American Idol. This means that the prospects are actually
sold on the phone, and the written part essentially summarizes the agreement
made by phone. My feeling is that the selling takes place when you’re on
the phone, talking with the live prospect. Because, once the discussions have
concluded, the interactive persuasion part of the process is out of your hands.
Then you’re relying on a static proposal document to do the selling for you. The
objective of your call, then, is not to quickly end the call so you can get a
proposal out the door. It’s to ensure they’re sold before you even think about
scratching out a proposal. Accomplishing this is no great secret. You
must question thoroughly, learning specifically what they’re looking for, and
how a decision will be made. Ask them,
“What are the three most important points you’ll base
your decision on?” You
also need to learn the decision-making hierarchy and process: “Who else
will be in on the selection process?” “What route will this decision
making process take in your organization?” “What, specifically will
happen after you receive this quote?” And don’t be shy about asking
money-related questions. Serious prospects aren’t offended by financial
questions, and they don’t expect a zillion dollars worth of value for pennies.
They can tell you where the money is coming from, and how much is available.
When you’ve sufficiently collected enough information regarding what
they want and need, and you’re satisfied that they’re a real player, make your
proposal by phone: “Based upon what you’ve told me, I feel I’ve got what
you’re looking for, and I’d be happy to put it in writing for you. Let me first
review this with you to be sure I’m on target.” Then tell them precisely
what would be in your proposal. Go through point by point, and ask trial closing
questions: “How do you feel about that suggestion?” Focus
intently on their reactions as if you were listening to the winning lottery
numbers on the radio, and you’ve already hit the first three out of six. Change
your recommendations, if necessary. Then conclude with, “Based on
everything I’ve told you, does this sound like a proposal you would accept?”
Ultimately, the
goal is to hear them say, “Yeah, I like it.” Congratulations. You’ve now moved
from being a proposal author to an agreement writer. In situations where
there are other people or dreaded committees involved in the sales process, at
the very minimum, get your contact’s commitment that she is sold, and will be
your advocate: “Are you personally sold that my proposal is the best one
for you?” Then offer whatever assistance you can in helping her sell
it. By the way, all of these principles apply to anything you send out:
samples, demos, informational videos, even brochures. Many sales reps could cut
down by at least half the numbers of proposals and bids (and brochures and
samples) they send, while doubling their sales. Examine your own process,
determine where you can eliminate the unproductive activity, and I know you’ll
increase sales. (Art Sobczak helps people get more business by phone,
through his books, tapes, seminars and workshops. Get free sales tips from him
every week through his free, weekly, e-mail newsletter, the TelE-Sales Hot Tips
of the Week. E-mail to teletips@businessbyphone.com with “join” in the subject
line, or go to www.BusinessByPhone.com to sign up, or call
402-895-9399.)
“What, ideally, would you like to see?”
Again, your next remarks are based on their response. If they have
problems with an area, discuss it and work it out. Better now than after they
get it in written form and it sticks out as a liability.
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