How To Really Win Proposals & Improve Cash Flow!

INTRODUCTION:

No matter what type of business we are all in, we are all trying to sell a solution to our customers and clients. For small business accountants these days, selling financial statements and tax returns is the minimum. Selling business advisory services to improve revenue, profits and cash flow is now the norm. For other businesses, it could be putting together quotes for a big order. The trick is how you put these proposals together when offering these solutions.

Many years ago we went to a conference which had a speaker there by the name of Alan Weiss. When he explained the best ways to put proposals together it all made sense and we went back and tried his suggestions. Within 6 months revenue and profits had grown and our cash flow had improved so that debtor days (which 10 years ago was 65 days) is now in fact 11 days. This growth and improvement in cash flow was all due to the way we approached our clients when wanting to do not only existing business but more business with them.

So what were some of the key things that made such a massive difference?

Figure 1: It always pays to listen before offering a solution.

1. Listen, Listen, Listen!

When people walk into your business, it's usually because they feel you might be able to help them with their problem. Great salespeople listen and make sure they understand the client's problems and will often barely talk to start with but will often use the word "Why?" to get the full picture of a client's needs.

2. Situation Appraisal

When putting a proposal together or even if it is a walk in sale, it's important to reaffirm what their problem is and what they are trying to achieve. Once the situation appraisal is expressly put back to them showing that you understand what needs to be done, your potential customer will have more confidence in what you have to offer. Rushing in and offering a solution without having fully understood the issues will kill almost every deal!

Figure 2: Your solution is supposed to stop customers from going around in circles! Photo courtesy Balmain Baz & Lara Scolari Gallery Balmain

3. Objectives Of The Solutions Offered

Explain also what the objectives of your solution to the problem might be. It might be that they want something that will free up their time so speed could be an issue. Maybe they want something that will do the job once and be prepared to pay extra for this. You have to ask them what it would mean if the solution offered fixed what they wanted.

Again, whether it's a written proposal or an in-store interaction, repeating what it will mean for the customer or client if you can help them, will give them a sense of relief and give a picture of what their life will be with an answer to their problems.

4. Solution Options

Armed with all the information from your meeting, in many cases you can offer alternative solutions from the base price to the dearer options. Giving customers options is a very powerful way to up sell and they won't feel hemmed into the one solution (unless of course there is truly only one solution). With the tick a box options, list down the extra benefits each one has over the previous one.

Generally, it's best to give only 3 to 4 options as once you go past this, it can all start to overwhelm so that no decision is made.

5. Payment Options

This is the best way to improve your cash flow if you sell on credit terms. Once you offer the fixed price solutions and they select the option they want, you can now offer payment options including:

• discount for payment upfront;
• 50% on acceptance and 50% on delivery;
• funding options from appropriate financiers over so many months with interest.

Of course the more ways you can accept payment (EFTPOS, EFT, direct debit, credit card etc) the better and easier it will be for you to be paid.

For those that offer payment options when selling on credit, it will also make it much easier for your debtors' clerk to ring and chase up if the terms were very clear at the start.

Figure 3: "Number 4 back & sides my backside!!!!!" Never assume you know what the client or customer needs. Give them what they want! Photo courtesy Lara Scolari Gallery Balmain

CONCLUSION: 

How do you put your proposals together when selling a solution to a client or customer? Is it just a verbal price or a just a written quote? Do these contain any of the above points that could assist you to up sell and improve your business cash flow and profits?

Better still, going through the process will not only help ensure you are selling what your client needs (nothing extra) but also where it is warranted, you get to help them more with something they didn't realise they needed. Whilst it might cost them a little more, if it fixes the problem, you should find they will come back, and back, and back!