Monday, July 28, 2008

Plan A, B & C

Time to share with you a sales proposal technique that I learned years ago.

My example applies to radio advertising, but you can adapt it to nearly anything that you are selling.

First, what is the dollar amount that you believe the client will spend?

Let's say $2000 a month for our example. This is going to be Plan C.

Multiply that times one and a half. $2000 x 1.5=$3000. This will be Plan B.

Multiply the dollar amount of Plan B times one and a half. $3000 x 1.5= $4500 a month. This is Plan A.

So you have your three price levels, next you decide what your client will get for the money they spend.

I start with Plan A and look at the options that would be good for my client and produce a return on investment as quickly as possible. This may include daily radio commercials, a live broadcast or two, perhaps an in studio interview, sponsorship opportunities, website links, website promotions, email sponsorships, etc. Everything has a price with it, although my proposal doesn't itemize everything.

Now I look at my price for Plan B and start taking away stuff from Plan A. I still want an effective campaign, but it make take a little longer to get the results because we are doing less and the cost is less.

Next, I do the same thing to create Plan C. Remember Plan C is the dollar amount we believe they will say yes to, so I want to be sure that it is an effective plan that produces results.

When I give the presentation, I control the conversation and show what I want to show.

I do not say, "I've got three options for you", and I don't give them all the pages all at once.

Instead, I present them with Plan A, showing them what we are doing and why and get their agreement on each of the items I included. We talk through it and answer questions. Then when they see the price, they will then have to decide if they want to come up with the money for everything they said they liked.

Sometimes, they go with Plan A and we move forward. If not, then I tell them, that this is something they can grow into, and I pull out Plan B.

I compare Plan B with Plan A and show them why it costs less and we talk some more.

If Plan B is still not going to fit their "budget", then we go to Plan C.

Remember present one plan at a time, one page at a time. Talk, converse, get agreements as you do this.

You will have laid out a plan for now, plus one or two upgrade plans for the future.

And one more very important tip, as you present the cost...

Ask what they need to sell (or produce) in order to pay for that investment. That way you have a goal of what you need to see happen and a time frame for getting it done.

Just as car dealers, appliance salesmen, even gas stations offer different prices for different services and options, you can too, and by following this method, everyone can win.

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