Question

Topic: Strategy

Pricing In A Proposal's Executive Summary

Posted by Anonymous on 2/11/2004 at 4:50 AM ET 25 Points
Not quite sure where to post this. What are your thoughts on quoting the bottom-line price in the executive summary of a proposal? In our case it is for a telecom network managment system anywhere from 500k-5M USD. I say never. My colleagues say it shows you are not afraid and/or hiding the price. What do the Pros say?
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RESPONSES

  • Posted by Paul Linnell on 2/11/2004 at 5:02 AM Member
    I would agree with your colleagues.

    For an “executive summary” to be a “summary” it should contain all the key facts – and price IS a key fact.

    Also – if your audience isn’t expecting a price in that ballpark then there has been a breakdown in the sales process.

    Anyway – they are my thoughts:-)

    Best regards

    Paul Linnell
  • Posted by Chris Blackman on 2/11/2004 at 5:45 AM Accepted
    Upfront, every time. It MUST be in the Executive summary, else the summary is not really a summary, is it?

    Why bury it down the back? What are you worried about?

    If price is a shock, then one of three things has occurred:

    1. You've proposed too ambitious a solution for the client’s problem
    2. The client has developed an incorrect expectation of the likely cost of solving their communications problems
    3. Your firm is uncompetitive…

    On the assumption you have the right kind (and scale) of solution, you’ve run the sales process well and managed expectations, and your firm is competitive, what’s the point of postponing the “moment of truth”?

    If there’s any element of surprise at all, you can spend the next several pages or paragraphs building the case for your solution – and for your price.

    In any case, when you put the price down the back of the book, in nine times out of ten the client will rudely leaf their way through until they find it, and not listen to what you’re saying as you make your presentation to them.

    And hey, if it goes down so badly they throw you out straight away; you just saved yourself an hour or so doing the words and pictures part of the presentation. The numbers will be the same, wherever you put them, won’t they?

    The only caveat I have stems from your suggestion of a 500k – 5M variation in price. If you are proposing a very elastic-sided solution (with an order of magnitude between the low and high price) I would strongly consider making several separate proposals, and introducing the pricing for (say) a L, M and H scale solution up front, then using the body of the presentation to explain the differences between the three or more levels of solution. Not sure exactly what you meant by that, maybe you were talking general variations in prices of systems you sell, not specifically for one particular client’s solution…

    Good Luck, and BE UPFRONT!
  • Posted by Pepper Blue on 2/11/2004 at 10:53 AM Member
    Assuming you have already done your presentation(s) and the customer/prospect believes you are qualified and will do an equal or better job than your competitor(s), and you know your price is competitive and/or supportive by your solutions, the reason you are presenting the executive summary is to present your price.

    Everything else further recaps and/or supports it.

    Any customer/prospect, despite how much interest they show in the rest of the content, are really just waiting to get to the price. Doesn't matter if it is front, middle or back, they want to see it ASAP.

    Ask them upfront when they want to see it.

    If you don't show you it, it will look like you are trying to avoid it
  • Posted by ReadCopy on 2/11/2004 at 1:01 PM Member
    Can't really add to what everyone else has said.
    It is an Executive Summary, the part senior managers will expect to gain the high level detail from and they WOULD expect a mention of the costings here.

    Obviously, you will have an appendix where costs are fully brokendown to the n'th degree :-)
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