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There are some things that you can buy where it makes sense to purchase the lowest cost product: Detergent Sugar Used cars Currency
Others, it makes sense to spend a few more dollars and get higher value from the services Brain surgery Legal counsel You know.
Want to share a story about buying our first home. When we went shopping for a house, we had a figure in mind - call it X But our desire for our neighborhood was about 1.5X. We had a really crappy realtor who kept showing us homes in neighborhoods where there were murders, near strip clubs, high crime rates, etc. We wasted about 3 months looking at places where we had no desire to live. Finally I snapped. We had a heart to heart and she re-adjusted my expectations around how much we should think about spending on a home. If we wanted to get a starter home in our neighborhood, we would have to spend more or adjust our expectations downwards. We had a long talk and decided that it would be better to be mortgage poor and live in a good neighborhood than be rich and live in a terrible neighborhood. The same has to be done when re-engineering a commodity buyer.
Your home is an investment. Social meida is an investment.
You get out of it what you put into it, like any other investment you want to make it wisely, but certainly not for the lowest cost. Make the best investment for the money that you have. Is it better to buy $10,000 of Google stock or $10,000 of a penny stock? Idea is to invest in something that will get you the best overall return on investment not lowest cost.
Let’s talk about assumptions
If I’m wrong on any of these, I shouldn’t be here
My experience has been to do this with champion
But there are a lot of questions asked designed to develop these assumptions Budget - tend to be very up front about pricing and maybe even a little on the high end to get a reaction Start at $15 per seat Explain that we usually develop very custom solutions We will work in the spirit of partnership to deliver as much software as possible for your budget If you believe that it is the right solution Goals For assumptions to work, it is better if the goals are a little loose We think that we want it to work this way, but we aren’t sure What’s in it for them This paints the vision If we can assume that the goals & expectations are met, we can also assume that this persons personal rewards will be met Timing I assume that you want to go fast on this project and waiting around to configure servers and such isn’t a viable option. My point is that your champion is going to help you build a winning proposal, however there is a lot of ground work that needs to take place prior to developing this.
Like anything, timing is everything. The best part about an assumption is that it doesn’t have to be factual, your customer simply needs to agree with it. We can assume that tomorrow will be sunny, Socialtext will still be in business, that this project must be successful The sooner that they want to launch the better for Socialtext. 30 days, awesome We can make the assumption that it is important that you pick a vendor that can have you up and running in 30 days What do they want that you can reengineer out of? I hear that you want to buy 10,000 users for the price of 100, but can we assume that at least 1,000 will use it in the first year? After you go through your assumptions, present your verbal proposal If all of my assumptions are inline with your’s, I’d like to present something to you that I believe is a real winning proposal If these assumptions are wrong, then my proposal isn’t going to be right, so let’s review them first
Philosophical Selling... How to Use Assumptions to Create a Winning Proposal
<ul><li>Pricing vs. Value </li></ul><ul><li>My Philosophy </li></ul><ul><li>When you should talk pricing </li></ul><ul><li>Using Assumptions </li></ul><ul><li>QA / Breakout </li></ul>
… an investment in people … an investment in ideas … an investment in growth
My Assumptions <ul><li>You want to close bigger deals, faster </li></ul><ul><li>You don’t want to bring up pricing too early, but don’t want to surprise anyone </li></ul><ul><li>Your deals aren’t transactional </li></ul><ul><li>You want to try something that can bring a different, more professional perspective to your negotiations </li></ul>
What it is… <ul><li>The act of making 4 - 5 accurate assumptions about your customers to craft the perfect, winning proposal. </li></ul>
How’s it work… <ul><li>Assumptions are binary </li></ul><ul><li>If assumptions are aligned to goals & requirements, proposal falls into place </li></ul>
… but <ul><li>Budget </li></ul><ul><li>Goals & Expectations </li></ul><ul><li>WIIFT </li></ul><ul><li>Timing </li></ul>
When to use it… <ul><li>Timing is everything </li></ul><ul><li>After discussion of launch </li></ul><ul><li>Do you have a date? </li></ul><ul><li>Works best if they want something that you don’t want to give up </li></ul><ul><li>Before verbal proposal presented </li></ul><ul><ul><li>But have your proposal </li></ul></ul>
Setting the Right Assumptions <ul><li>Project </li></ul><ul><li>Success Goals </li></ul><ul><li>Timing </li></ul><ul><li>Budget </li></ul>