How to Pitch a Compelling Proposal with Steve Thompson #285

In this episode guest Steve Thompson shares his process on how to pitch a compelling proposal. It’s frustrating responding to an RFP and losing the deal after hours of effort. Stop wasting your time and start applying Steve’s book “The Compelling Proposal – Make It Easy For The Customer To Buy From You“.

RFP – Request For Proposal

Formal document used to level the vendor playing field. Goal is to stop the winning of contracts with wine and dine tactics and other nefarious efforts. But they can be an incredible time waster!

Steve doesn’t like RFPs. He has never found an RFP that shares the outcomes the customer wants to achieve. To win a contract , you really need to know what the buyer wants to accomplish. How can we accomplish this?

RFPs Lost at the Start

You’re going win or lose a deal before the RFP is released. Steve has found his win rate was 1 out of 20. Instead, you should be talking to the client ahead of time. Help them write the specs so that the deal is tipped to your favor.

How can you do this? Tell the you DON’T was to respond! He recommends a form letter:

- appreciate the opportunity to bid
- after reviewing RFP can’t determine the real outcomes you’re trying to achieve
- because of that, we’re uncertain we can give you the very best outcome possible
- therefore we’re going to decline
- but in the future, if we get to meet with you and your team to understand what you want to accomplish, my commitment is that you will always get the very best solution that we can provide

He then CC’s CEO and other concerned executives.

Decline To Respond to RFP Results

When he sends this letter he has seen the following results:

1/3 time never heard back (never going to win it anyway)
2/3 time get a phone call (often gruff but explained why)
1/2 of the 2/3 asked for an appointment. When he gave proposals, 80% win rate!

Design of a Compelling Proposal

If the letter works, this is the pitch Steve recommends. It contains seven slides in the deck :

1. Value Proposition
2. List of specific outcomes important to them
3. Mapping of key outcomes with your solution
4. What’s important to seller (framing win-win)
5. 2-3 examples of successful customers in similar situation
6. Multiple options – They pick best fit, then ask how can it be improved.
7. Rewording Slide #2

How To Find Steve Thompson

Website: www.valuelifecycle.com
LinkedIn: www.linkedin.com/in/steve-thompson-61913b17