The Right Time for a Proposal
…….for the Sales Manager
Proposals and presentations are a very important part of the sales process. However, they must occur at the right time and be directed to the right audiences. Part of your job as a sales manager is to oversee the proposal process, both in terms of deciding if and when to make a proposal and determining the scope of any proposal that is made. By managing your salespeople within the context of a sales process and applying strict and consistent criteria to the proposal decision, you will be able to improve your department’s success rate. And, by discussing the criteria and decision making process with your salespeople, you will eventually be able to transfer some of the responsibility for screening to them.
Timing is determined by the sales template used by the sales department. While various patterns have been developed, most selling systems now follow the ordering pioneered by David Sandler more than 25 years ago. Sandler cautioned against making premature presentations, which he said usually amounted to giving free consultation or “spilling your candy in the lobby.” While the issue has become more complex in the customer driven sales environment, timing is still one of the primary factors determining the potential effectiveness of a presentation.
The Sandler system places the presentation well into the selling process rather than near the beginning as was typical of “features and benefits” selling. This is because of the emphasis in today’s marketplace on customer-based marketing and customer development. Salespeople are increasingly aware of the importance of understanding the customer’s needs and objectives and determining whether there is a fit between the customer’s goals and your company’s products or service before making a presentation. That fit must include considerations of the appropriateness of the customer in considerable detail.
In the Sandler Selling System the presentation (known as the Fulfillment Step) is the sixth step of the seven step process. This ensures that the presentation demonstrates a workable solution to the real problems and issues facing the prospect, that the prospect has the budget to pay for this solution, and that your company can profitably deliver the solution. The presentation is made only after your salesperson establishes the understanding that the authentic decision maker will be present and will decide yes or no after the presentation.
When selling without a system, it is difficult to establish an accurate cost for generating a proposal because you can’t easily distinguish activities related to proposals from other activities. Using the Sandler Selling System enables you to separate the cost of the earlier steps from the cost of the proposal development and presentation process. The cost of the proposal and presentation includes:
- Time spent identifying and specifying the relationship between the prospect’s pain and the solutions your company could offer.
- Research into the competition you face on the proposal and the solutions they could offer.
- Time spent developing an advantageous positioning of your solution relative to the competition.
- Time spent writing the presentation and developing appropriate visual aids and support materials.
- Production cost of presentation materials
- Time spent making preliminary presentations to members of the buyer’s team and getting feedback.
- Time spent finalizing the presentation based on feedback.
- Time spent in rehearsal and dry runs.
- Time spent presenting the proposal.
- Any travel expenses incurred during the process.
