Page 222 - Writing Winning Business Proposals
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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?
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13.3
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FIGURE 13.3 Pricing strategy related to strategic value
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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,