The Importance of Price in Proposal Writing

Most companies feel that price is the major issue when it comes to any competitive bidding situation.

Whilst price IS an important issue it isn’t the be-all-and-end-all. Far from it, in fact.

What is ever so more important is VALUE-FOR-MONEY.

In most situations a buyer doesn’t want the lowest price product or service.

They want to purchase your product or service because they have a need that they want fulfilled. They want to achieve a certain result.

Then, in achieving that result they want the highest ‘return-on-investment’ for the money they spend.

That’s where value for money comes in …

On several occasions we have gone into competitive bidding situations and we have been more expensive than all other competitors and we have won the contract.

The same goes for a number of clients we’ve helped.

The secret was being able to sell the results they were going to achieve.

So, does your proposal offer excellent value-for-money?

Here are some points that buyers feel are important when determining whether an offer offers great value for money.

a) After reading your document, the buyer perceives the potential return-on-investment is far greater than the price you have quoted.

b) AND … they perceive the value your company offers to be far greater than the value offered by OTHER bidders.

c) Your company offers a strong point-of-difference that differentiates you from other suppliers.

d) You have re-assuring risk management and or risk reversal mechanisms in place i.e. QA, guarantees etc.

As you can see, there’s a fair amount to consider to make sure your company comes across as:

• being the most credible;
• offering the best value-for-money;
• AND being compliant with the buyer’s needs.

Inside “”Proposals, Submissions and Tenders that Sell”" you’ll find a wealth of information on:

• how to sell your offer;
• how to position a higher price
• how to make your price seem lower than it really is;
• how to win a contract even if you’re more expensive than all other bidders;
• how to PROVE once-and-for-all that your company offers the BEST service and product;
• how to identify your point-of-difference or Unique Selling Proposition and how to sell that USP in the most benefit-oriented way;
• and much much more.

To read more about what “Proposals, Submissions and Tenders that Sell”" is about, click here.