Question

Topic: Strategy

What To Consider In Writing A Sales Proposal

Posted by Anonymous on 4/29/2010 at 10:33 PM ET 25 Points
I am into beaded jewelry making. I am targeting a company to get products from me. I would like to go directly to the big boss because they are the decision makers and has more buying power. What are the things that I should consider in writing a sales proposal?
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RESPONSES

  • Posted by CarolBlaha on 4/30/2010 at 7:43 AM Accepted
    Do not go in with a sales proporsal until you meet with the "big boss" (BB) first.

    Go in with samples, and knowing the type of people who buy your jewelry. Research the company and make sure your product fits in with the same niche this store serves. Talk price points at this stage vs pricing. BB knows the sweet spot, the price point where product moves. Remember that stores evaluate themselves by sales per SF. They are limited by the SF of their store and can only bring in product that increases the revenue they get for each SF.

    Then talk merchandising, consistant quality, production and delivery and returns. Returns as it would mean for you is if something didn't come in the quality they liked, or a customer brought back a necklace that she wore once and the clasp broke.

    From there, you set a follow up appointment with BB and set down on paper your offer, which should include any other understandings -- like returns, min orders, and terms (when you expect to be paid).
  • Posted by CarolBlaha on 4/30/2010 at 9:06 AM Member
    I think she needs to go in with actual samples-- photos as above post as back up-- but first and foremost samples. That is how these buyers do business.

    If you look at the reviews on a site like Bidz.com, you'll see post after post of people buying a beautiful photograph, which clearly overstates the product. BB is a sophisticated buyer-- when they go to buying shows they go to touch and feel -- and get the sexy story.

    And talk price point vs purchasing price at this point. She can dial down or up the jewelry to go with the stores demographics. Or at this meeting immediately know this is not a good prospect and not waste each others time. No matter how exquisite the jewelry and wonderful the justification -- a store carrying $29 blouses is unlikely to have the client who will accessorize it with a $200 necklace. Don't talk price till you know what you're selling.
  • Posted on 4/30/2010 at 11:04 AM Moderator
    Some really great advice above. I would just add that the key to success is doing your homework first. You have to understand the target company better than they understand themselves. Don't rush to a meeting with anyone until you have high confidence that you know what will appeal to them and what won't.
  • Posted by ckieff on 5/2/2010 at 7:31 PM Member
    To return to your original question, what should you say in a letter- I recommend the following:

    Keep it brief.

    Ask for what you want- a meeting.

    Answer their first 3 questions up front. (Learn these from your research)

    And finally be persistent- know that in a larger company many people can open the door, not just a single Big Boss.
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