I was taught very early on that a customer proposal should be quite detailed. Not only details about the approach, tools, services, methodology etc. Detailed breakdown of cost too.
Why? Because in order to price a proposal properly you have to understand exactly what it is you are planning to do. If you break down the cost in terms of ‘How long will it take to do that piece?’, you can more accurately work out the price. The main benefit of all this is twofold.
- You give the customer an accurate cost estimate. They will appreciate that.
- You avoid shooting yourself in the foot by underpricing in order to get the job in. You can easily justify how much a thing will cost if you know exactly what it is you need to do.
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