Page 222 - Writing Winning Business Proposals
P. 222

Writing the Fees Slot                              213





                                To what extent will winning this project help you meet your organization’s
                                To what extent will winning this project help you meet your organization’s
                                strategic objectives?
                                strategic objectives?
                                ‡ To what extent do you want to work with my organization (for example, because
                                ‡ To what extent do you want to work with my organization (for example, because
                                 you’ve targeted us or our industry)?
                                  you’ve targeted us or our industry)?
                                ‡ To what extent is the overriding problem or opportunity to be addressed desirable
                                ‡ To what extent is the overriding problem or opportunity to be addressed desirable
                                 (for example, because it will provide you with important intellectual capital or
                                  (for example, because it will provide you with important intellectual capital or
                                  experience)?
                                  experience)?
                                ‡ To what extent might the project favorably affect both organizations (for
                                ‡ To what extent might the project favorably affect both organizations (for
                                  example, because it will provide substantial breakthroughs that could be well
                                  example, because it will provide substantial breakthroughs that could be well
                                  publicized)?
                                  publicized)?
                                ‡ To what extent does the project offer possibilities of future work with my
                                ‡ To what extent does the project offer possibilities of future work with my
                                  organization?
                                  organization?
                                ‡ To what extent might the project (or potential project extensions) produce
                                ‡ To what extent might the project (or potential project extensions) produce
                                 substantial fees over time?
                                  substantial fees over time?
                                ‡ To what extent does the project offer you the opportunity to build a regional or
                                ‡ To what extent does the project offer you the opportunity to build a regional or
                                 country presence?
                                  country presence?
                                                 eg
                                                 t
                                   13.3

                                         ricing stra
                                        P
                                                   y
                                                            stra
                                                          o
                                                               egic va
                                                              t
                                                          t
                                                      l
                                                     re
                                                        d
                                                      ate
                            FIGURE 13.3   Pricing strategy related to strategic value
                            FIGURE
                                                                     e
                                                                    u
                                                                    l
                          investments in technology and technological tools, and expand the capability of
                          your staff through professional development.
                            I also know that your billing rates are often many multiples of your salaries, that
                          your offices are often lavish, that the cars you park in our lot are often more expen-
                          sive than my own and my colleagues’, and that your firm makes very nice profits.
                          So I know that you make a good deal of money when you sell projects at full billing
                          rates (assuming that you complete the projects successfully and within budget).
                            So you can choose to reduce your fees when a project has important strategic
                          value to your firm. You can make an investment; you can accept lower profit
                          margins. You can even tell me that a particular project should cost $X at normal
                          billing rates but that you have reduced this price to $Y because of strategic rea-
                          sons. (We consider the same thing when we sell our products.) In many cases,
                          lower fees will break ties between consultants.
                                        The Potential Risk to You and Your Firm
                          While strategic value is a factor that could cause you to consider reducing your
                          fees, potential risk is one that could suggest that you do the opposite. (See Figure
                          13.4.) If my company’s current financial situation or credit rating is questionable,
   217   218   219   220   221   222   223   224   225   226   227