Why proposals are involved in getting you paid.
A proposal sets out the expectations, the product or service you’re going to provide, what you need from the customer, when you need that customer to do and when you expect to get paid.
What goes into a proposal?
A proposal sets out the expectations, the product or service you’re going to provide, what you need from the customer, when you need that information from the customer, when you’re going to give things back to the customer and any other expectations around the project. How does all of that help with getting you paid?
You are going to explain to them:
- what you’re going to be providing them.
- when you’re going to be providing it to them.
- how you’re going to be providing it to them.
- what to expect.
Great Customer Service from the start:
You’re giving them customer service. Good customer service gets great payments. Why? People like to reward the people for having done exactly what they expect. If you give them a proposal, then you’re telling them what to expect. You don’t have to mention payment terms in the proposal but it is useful to start the conversation as an early stage.
What should you do about putting payment terms in a proposal? Personally, since it’s a proposal, everything’s up for negotiation. That’s the whole idea: you haven’t actually won the contract yet.
Research! Due Diligence – it’s your time you are spending!
I put the payment terms in the proposal as per your research.
Of course, you have researched this customer that’s come to you for a proposal, haven’t you?
You have established their credit rating.
You have done your credit check, your due diligence.
You’re spending your time writing this proposal. You’re time is the one thing you can not get back.
You’re time is the one thing every company needs to charge for.
Please, please make sure, before you spend time doing a proposal that you do your due diligence.
It’s you’re money, after all, that you’re spending.
You’re money, your piggy bank of time that you’re giving to this customer. Have a think about that with your payment terms and your charges.
I am including this time already. Have you even considered how long it’s going to take you to write this proposal?
Do you do your proposal for free or do you charge for them?
Think about the benefits you’re giving the customer.
It’s not just about you, your efforts, your experience, your time.
It’s about what you’re saving them.
- Are you saving them sleepless nights?
- Are you saving them a task that’s taking them away from the important things in their business?
- Are you saving them having to think about something that would triple them and take that space and that rate?
- It’s not just about the product or the service you’re giving them. It’s also about what you’re saving them.
- Are you giving them back family time on the weekend?
- Are you stopping them from having to research things on Google and spend hours looking for photos that you can find very quickly?
- Are you saving them an afternoon in writing so they can spend it with their children or their partner?
When you’re writing a proposal, you need to consider all of this and make sure that when you write your proposal you include your charges. Also include how, when you expect to be paid. By setting it out upfront, you’re building that trust relationship. You’re telling them exactly what you’re expecting from them. You’re also telling them exactly what they’re expecting from you.
Customer service is key. Building relationships is key. People buy from people they know, like and trust. If you can start that trust relationship really early on, you will get the customers that are right for you. By setting out your payment in the proposal, you’ll get rid of anyone that doesn’t have the budget for you. Think about that. Proposals help get you paid. Help get you the right clients for you and help get you the clients with the right budget.
If you’ve got any questions on this, you can find me on Twitter at rchivertonltd or Facebook, Facebook/rchivertonltd or drop me an email, firstname.lastname@example.org. It’s great to interact with you and I look forward to hearing from you all soon.