Page 74 - TCDB combined Book

50 The Complete DESIGN-BUILDER

Proposal Types:

Request for Proposal (RFP):

Initiated and controlled by the prospect this type of proposal is based on the prospect
providing very basic information, requesting that the proponents submit innovative design
solutions. You will be required to do thorough research, possible retaining outside professionals,
resulting in substantial costs in preparation of your proposal. Beware of prospects looking for
free consulting services through this type of proposal. Qualifying will be necessary and you
must have contact directly with the prospect/decision-maker or suitable information to justify the
time and effort involved with this proposal type. Past buying decisions and previous track record
on major purchases by this type of prospect should be high on your list of qualifying questions
for this proposal. All design information and drawings submitted on this type of proposal should
clearly state copyright protection and that no reproduction is permitted without your written
permission and approval of any retained professionals. Disadvantages of the Tender and Custom
Proposal types is that they are initiated and controlled by the prospect and will usually involve a
partisan middleman or design professional influencing the owners’ buying decision.

Negotiated Proposal:

Initiated and controlled by the builder from the prospecting and qualifying stage through
the proposal preparation and to the final presentation. All the project requirements and
information were received through sales call contact with the prospect. The key point here is to
maintain complete design-building control over the chain of events leading up to the closing of
the sale. This type of proposal would be considered the most preferred when calculating
percentages for the sale. All of your selling techniques and strategies will apply here and in
particular the continual qualifying and head-on dealing with the obvious and hidden objections
as they are raised. Advantages of this proposal type are that the builder initiates and controls the
proposal and also the buying decision process. Monitoring your sales results with the various
proposal types will help determine where your best opportunities are and also the proposal
situations that require review and possibly some technique adjustment. Should you represent a
special product or service that is specified as a base for a proposal, remember that your
competition will attempt to submit comparative items that may be less expensive etc. Being
specified is not always beneficial. Be prepared to offer alternates to avoid being undercut or out
maneuvered in this regard.