Saturday, October 16, 2010

Let Them Quote!

Another great meeting downtown; one hour of discussion followed by a short demonstration of my Proof-Of-Concept.

As the meeting draws to a close, the client says “We’d like to go ahead; Please draw up a proposal and quote us a price”.

I agree (The Answer is Always YES!) but on the way home I feel trapped.

There are too many unknowns and the client may think that it is but a short development step from proof-of-concept to fully-functional application.

If I quote too low I’ll get the job, but will have cheated myself out of my due rewards; If I quote realistically, the client may well perceive it as too high, and I won’t get the job.

I can calculate and estimate quite well, having years of practice and corrective feedback. I know to within ten thousand dollars how much the client spends on the current document process. If I quote half that figure, then the ROI takes a mere 6 months.

Then - a brainwave!

Why shouldn’t I write the specifications, draw up a proposal based on those specifications, and ask the client to suggest a price.

Now it’s the client who sweats bullets; I can assist by providing my estimates of what they currently spend per year on their current manual process.

If the client quotes too low they know I’m likely to walk away saying “I am sorry but I cannot do it at that price”, and if the client quotes too high, the deal won’t be approved.

Now it is the client who walks a fine line, and to make things better (for me), will probably err a little on the high side, just to be sure of getting the job done.

Why aren’t more entrepreneurs taking this approach?

Talk to Me !

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