Page 216 - Writing Winning Business Proposals

CHAPTER 13

Writing the Fees Slot

I

have a very good friend who played the stock market, timed it well, and made
lots of money—more money than most of us will ever see in our lifetimes. He
bought a grand house (more like a castle), purchased hundreds of rare books, and
assembled a rather significant art collection. By any stretch of the imagination,
my friend is rich. 1
Nevertheless, although he has two cars, the one driven more often is at least
10 years old, the air-conditioning works only sporadically, and the car will never
attract the attention of a good thief. Although he serves fine wines and eats well, he
uses coupons at the grocery store and reuses paper napkins at meals. His frugality
reminds me of other multimillionaires who reduce their utility costs by turning
down their thermostats in the winter and living in dimly lit homes.
My friend is like many potential clients, many of your potential clients. What
they are willing to spend does not necessarily accord with how much they have.
They are not cheap: They might buy a $10,000 rare book. But they are selective:
Why buy or use a new napkin when an old one will do? One purchase is an invest-
ment (and a wealth of aesthetic pleasure); the other is a cost.
As your potential client, I sense (intellectually, at least) that your professional
services are an investment; emotionally, I view your fees as a cost. Your challenge
is to determine a price—a pricing strategy, really—considering the value of your
proposed services. And this strategy must be as thoughtful, defensible, and well
suited to our situation as all the other elements of your proposal. If this strategy is
successful, I will view your services not as a commodity but as part of a rich rela-
tionship in which we both win. This chapter discusses what you should consider in
developing a pricing strategy that will lead to the rich relationship we both desire.
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