Your proposal costs more and you still win the deal

I still remember landing a project I was sure would slip through my fingers. My rate was pretty high, and yet my proposal got accepted. Of course I was happy, but honestly, I was also a bit surprised. In the first conversation, I had already noticed that what the client asked for wasn't really what they needed. I pointed that out and suggested a different approach. Not to sell more, but because I was convinced it would work better. Whether that tipped the scales in the end, I don't know. But it did make me think about something I sometimes forgot when writing proposals. The value of your offer isn't only in what you deliver. It's also in what you understand, prevent, and advise. And your client has to be able to see that value.

Why the cheapest option doesn't always win

Price matters. Of course it does. Especially when a client compares several proposals and has to watch their budget. But the lowest price isn't automatically the best choice. Researchers Anderson and Wynstra looked into why business buyers are sometimes willing to pay more. Their research shows that proof of extra value can help take away doubts about a higher price. Think of real-world examples, results you can show, or the option to try a solution first. Sounds logical. And yet I regularly see proposals where suppliers describe in detail what they deliver, but barely explain what the client gets out of it. If you don't make that added value clear, price is pretty much all that's left to compare.

Your client buys more than a product or service

When we think about value, we quickly think of saving money or bringing in more revenue. But for one client, it matters just as much that a machine needs hardly any maintenance. For another, it's essential that a service provider handles all the planning and coordination. That saves time, hassle, and maybe a lot of frustration too. You won't always see those benefits on the price tag. But they can definitely be what makes a client say yes.

Stop telling them how good you are

We deliver top quality. Our service is fully tailored. We offer excellent service. What do these statements tell the client? Not much, if you don't back them up. While writing this blog, I came across an interesting article: Customer Value Propositions in Business Markets, in which three researchers explain why so many value propositions fall flat. Companies list all kinds of benefits without making clear what they mean for a specific client.

Their advice: focus on the benefits that matter most to this client, and back them up with proof. So why would we do it any differently in proposals? Don't just write that you deliver fast. Say when you deliver and what that speed means for the client. Don't promise excellent service. Make clear how clients can reach you and how quickly you respond. And please stop writing that you take care of everything for the client without explaining which tasks or worries you actually take off their hands.

Product proposals: don't just sell the specs

With products, technical specs matter. But a feature isn't a client benefit yet.

Say you're offering a professional machine that costs €2,000 more than a similar model. Why would the client pay extra for it? Make that extra cost easy to understand. Here are four practical tips.

1. Turn features into benefits

Don't just write that a machine has an energy-efficient motor. State the expected yearly energy savings in concrete terms (so in numbers), based on how the client will use the machine as you discussed.

2. Don't make the client do the math

Say a machine uses 1,200 kWh less per year. At an assumed electricity price of €0.25 per kWh, the client saves €300 a year. Over five years, that's €1,500. Put the full calculation in your proposal. And I'll say it anyway: use reliable data, and mention your sources or any assumptions. A calculation that doesn't add up is obviously a no-go.

3. Look beyond the purchase price

Think of maintenance, lifespan, energy use, warranty, and any downtime. A more expensive product can turn out cheaper over the whole time the client uses it.

4. Back up your claims

Use product tests, certifications, measurements, or experiences from existing clients. "Lasts for years" sounds nice. Can you prove the machine lasts ten years? Then put that in your proposal. This helps the client compare not just prices, but also the costs and benefits in the long run.

Service proposals: show what they can't touch

With services, value is sometimes harder to show. After all, you're often selling knowledge, experience, time, or guidance. How do you make that concrete?

1. Show what your work delivers

A cleaning company doesn't just sell cleaning hours. It makes sure employees start every morning in a clean, hygienic space, and that visitors walk into a tidy entrance.

2. Show why you recommend something

Why did you choose this approach? Which alternatives did you consider? And why does your proposal fit the client's situation better?

3. Make clear what you help prevent

Think of delays, rework, miscommunication, or unnecessary costs. Describe how your way of working keeps those risks down.

4. Make the invisible work visible

Show how much preparation, coordination, and checking goes into it. Explain why you work this way. That way, the client sees everything that's involved and why it matters.

5. Show what you've achieved

Don't think you should only show off your most impressive successes. One good real-world example says more than a page full of logos.

Sometimes your biggest value is in what you don't sell

Back to my own story for a moment. Looking back, I realized I may have shown my added value before I even wrote a proposal. By listening carefully, thinking critically along with the client, and suggesting a different approach. Sometimes a client asks for a solution while the real problem lies somewhere else. If you spot that and can back up a better alternative, you show that you look beyond the project description. And no, that doesn't mean you should tell every client they've got it wrong. But you're allowed to give advice based on your expertise. In fact, why would you keep that knowledge to yourself?

Do the value check before your proposal goes out

You don't have to cram your proposal full of benefits. Three strong arguments that fit the client beat ten generic sales slogans.

So before you hit send, go through these five questions:

1. What does this client really care about? Have I made that clear in my proposal?
2. Which problem am I solving? And what changes for the client because of it?
3. Where's my added value? Think of time, money, convenience, certainty, or expertise.
4. Can I back up my promises? With numbers, examples, agreements, or other proof?
5. Why would the client choose me if I'm more expensive? Is the answer actually in my proposal?

Can't answer that last question well? Then you probably still have some work to do.

Because if you don't make your value clear, you leave the client little choice but to compare prices.

Sources

• Anderson, J.C. & Wynstra, F. (2010). Purchasing Higher-Value, Higher-Price Offerings in Business Markets.
• Anderson, J.C., Narus, J.A. & Van Rossum, W. (2006). Customer Value Propositions in Business Markets. Harvard Business Review.