proposals - what to say, how to say it, and how much to charge
TRANSCRIPT
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Proposals – What to Say, How to Say It,
and How Much to Charge
Constance Billé+1.215.285.8136
Society for Technical Communication - Philadelphia Metro Chapter
• Proposal Structure
• Cost Estimation
• Pricing
• Related Documents
• Request for Proposal
• Letter of Agreement
• Statement of Work
• Master Services Agreement
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Outline
You Get a Request
They are a bit vague
They ask for solutions
They want deliverables
They want results
They have a number in mind
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$
Scary Stuff
Estimation of the cost of a proposed project.
• The manager has to budget and spend wisely to get
what the organization needs
• The vendor has to make a living while delivering agreed-
upon work (perhaps using a new tool or technique) at an
agreed-upon price
Concerns on Both Sides
• What concerns does the
client have?
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CLIENTS VENDORS
• What concerns does
the vendor have?
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Client: Worry, worry, worry
Am I asking for the right thing?
Is this the right vendor?
What will “it” look like?
How much does it cost?
Do I have / will I get / the budget?
Will I get a good product?
Will I get it when I need it?
How can I protect myself?
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Vendor: Worry, worry, worry
Do I know all the options?
I’ve never done it like that before. Will it work?
How long will it take? How much will it cost?
How much should I charge?
How can I control costs?
Who should be on the team?
Have I accounted for everything?
Will they change their mind mid-way through?
How can I protect myself?
You Respond
You are selling!
Focus on the prospect
Show that you understand them!
Talk to them first and LISTEN
The answer to “Can you…?” is “Yes!”
But remember my mantra . . .
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[Company], an iconic American brand, has been undergoing significant
organizational change of late. In the last few years, the company has
experienced turnover and dispersion within its workforce, with 8,000
employees now spread across the globe. In addition, the demographic
profile of that workforce has changed.
The transition to a younger, global workforce has been accompanied by
the departure of senior leaders who exemplified the [Company’s] internal
brand; creating a general concern that the organization's internal culture
– as distinct from its external brand identity – has lost its clarity. Human
Resources recognizes the need for an internal program to promote the
[Company’s] unique cultural identity.
From years of working with global customer service organizations, [our
company] experience indicates that this . . . [your analysis and solution].
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CURRENT STATUS
PROBLEM
WE CAN HELP
Proposal Structure
1. Statement of Understanding
2. Suggested Project Outline
Phase I: DiscoveryThe project begins with XXX getting a full understanding of . . .. .
Process
Suggested activities include:
• Review existing collateral
• Select existing data for measurement of impact,
• Conduct interviews
• Produce a report .
Deliverables
Discovery findings report
Phase II: Task Force MeetingA task force consisting of representatives from Operations, Marketing, HR, …
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Proposal Structure
2. Project Outline
3. Development Process
Suggested Development Process
• A weekly conference call to . . .
• Outline an overall design . . .
• Receive any templates or graphics to be used or
adapted
• Each week develop a first draft of one unit
• Upon draft approval develop media storyboard. . .
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Proposal Structure
3. Development Process
4. Deliverables
Eight modules of materials including
• Facilitator Guide in Word format
• Presentation in PowerPoint format
• Participant Guide in PowerPoint format
• Four Web-based self-instructional modules . . .
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Proposal Structure
4. Deliverables
5. Timeline
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Activity Completed
Unit1First Draft Week 3
Unit 2 First Draft Week 4
Unit 3 First Draft Week 5
Unit 4 First Draft Week 6
Pilot Week10
Here is a suggested timeline to reach your target date of xxxx, in which case activities must commence by XXX.
Proposal Structure
5. Timeline
6. Roles & Responsibilities (Optional)
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Modules 1 2 3 4 5 6 7 8 9 10
One DRAFT REVIEW REVISE APPROVE
Two DRAFT REVIEW REVISE APPROVE
Three DRAFT REVIEW REVISE APPROVE
Four DRAFT REVIEW REVISE APPROVE
FINALDELIVER
Proposal Structure
6. Roles & Responsibilities
7. Pricing
For delivery of eight modules as specified above,
not including any on-site photography, travel or incidental
expenses incurred in the production of the deliverables
outlined above;
fees do not include any printing, photography, or
telecommunications expenses.
$100,000 USD
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Proposal Structure
7. Pricing
8. Payment Schedule
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The price is quoted in US Dollars according to the following schedule
Upon signing Letter of Agreement $25,000
Upon approval of outline $25,000
Upon approval of first draft $25,000
Upon delivery $25,000
TOTAL $100,000
Proposal Structure
8. Payment Schedule
9. Appendix
• Company Experience
• Project Team Biographies
• Work Samples / Project Descriptions
• Client Endorsements
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Proposal Structure
9. Appendix
What goes into estimating cost?
• Tasks
• Time
• Team
• Technology
• Experience and benchmarks. e.g., Storyboard
or wireframe analysis (pages, frames, videos,
graphics, audio, minutes, etc.)
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Assembling the Team
Who do you ask?
What do you know about them?
Have you worked with them before?
Are they available? Are they reliable?
Employee? Contractor? Sub-contractor?
Rates
• Employee
• Contractor
• Sub-contractor
• Hourly?
• Per diem?
• Per deliverable?
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Cost Estimation
• Assemble project team with all needed skills
• Breakdown phases and tasks
• Add communication & coordination
• Assign hours to everything
• Know personnel rates
• Base on known units
• Go high on unknowns
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What goes into determining price?
• Cost estimation
• Business overhead and margin
• Competition
• Prospect
• Size, resources
• Expectations
• Authority level
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Start with the Known
• Start with known cost elements
• Do some homework on the unknown
• Cover your overhead and the “X” factor which gets
bigger with . . .
• More Unknowns
• Longer timeline
• More people involved
• More regulation or bureaucracy
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“Cost +” Pricing
Conceptualize the design
Define deliverables
How many screens, pages, illustrations
Categorize components – e.g. how many “simple” vs
“complex” interactives
Estimate effort and timeline for each step of process
Describe process & project roles / staffing
Define how many review/revision iterations
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Price Presentation
Bundled price?
Per deliverable?
Retainer?
Set time effort limit – then hourly charges
Note exclusions – travel, out-of-pocket, printing, etc
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Address These Issues in Pricing
New technique or technology
Time frame – team size, skill
Complexity
Not too low
Not too high
Value independent of effort
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TECHNIQUE
PRICE
TALENT
Pricing
Tasks, Hours, Rates
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Rate1 Rate2
CLIENT $125 $150
Activity Who Hrs Charge TOTALS
DISCOVERY
Confer with team on project Lead 20 $3,000
Confer with team on project Person B 20 $2,500
Confer with team on project Person A 20 $3,000
Review internal docs Person A 6 $750
Review data of impact Person A 6 $750
Intview(8 )svc /learng needs Person A 10 $1,250
Rapid design meeting Lead 6 $900
Rapid design meeting Person B 6 $750
Rapid design meeting Person A 6 $900
Develop specifications Person B 8 $1,000
TOTAL DISCOVERY PHASE $14,800
Task Time Line GANTT Chart
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Week1 Week2 Week 3 Week 4 Week5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20
Design
July July July Aug Aug Aug Aug Sept Sept Sept Sept Oct Oct Oct Oct Nov Nov Nov Nov Dec
Discovery
Design
Document
REVIEW APPROV
Templates REVIEW APPROV
Part 1 REVIEW REVISE REVIEW REVISE APPROV
Part 2 REVIEW REVISE REVIEW REVISE APPROV
Part 3 REVIEW REVISE REVIEW REVISE APPROV
Part 4 REVIEW REVISE REVIEW REVISE APPROV
Part 5 REVIEW REVISE REVIEW REVISE APPROV
Beta Class
Delivery
BETA REVIEW
Review/Approv
e
REVISE APPROV
Production/
Class
Logistics
Delivery LAUNCH
key VENDOR
CLIENT
Some tasks allow “slide”. . . . some do not
Request for Proposal
• Know the rules for competition
• Follow the stated structure
• Meet deadline
• Interview or Q&A is Important
• Use third party endorsement / prizes
• Use Affirmative Advantages for government and
nonprofit proposals
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Statement of Work (SOW)
More detailed than proposal
Roles & responsibilities
Use non-disclosure agreement to protect proprietary
information
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Master Services Agreement (MSA)
• For on-going contracts, such as annual renewal of a
program
• Makes it much easier to write a Statement of Work
• The SOW refers to the MSA
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