BUSINESS

How to Make a Commercial Proposal?

A commercial offer is a marketing tool whose task is to inform the recipient about the company’s specific product, promotion, or service and present the benefits in a concise, clear, and convincing way. A quotation template can also help you with this. Let’s discuss how to prepare a competent commercial proposal.

Types of commercial proposals

Commercial proposals are divided into “cold,” “warm,” and “hot.” Cold offers are sent out to a database of “sleeping” customers or third-party databases. “Warm offers are sent to a database of loyal existing customers. Hot offers are commercials sent out by appointment after a company (or rather, its decision-maker) has already been interested in the offer.

The goal of a cold quote is to generate interest. A warm quote aims to move the customer through the sales funnel. The goal of a hot quote is to close the deal.

Structure of a commercial proposal

The general structure looks like this:

1. Offer.

A commercial offer should be brief and to the point, articulated in one or two sentences. The offer must be worded clearly. 

A commercial offer must specify its benefits in the very beginning so that the recipient immediately understands what they are offered and why they need it. Here is an example: “Wholesale supplies of dental alloys from Europe for clinics specializing in dental implants. Hypoallergenic; biocompatible; survival rate — 99.6%.”

The acclimation rate is very important for dental clinics. A high rate indicates the absence of allergies in patients and, consequently, doctors’ problems. The benefit is shown well.

2. Lead (introductory paragraph)

This part either identifies the problem or justifies the very fact that the quote has been sent if it is “hot.”

Example: “As a continuation of our telephone conversation I send you…” or “At the request of the chief engineer of your company we send you…”.

3. The main part

This part demonstrates the importance of the problem and the company’s solution, emphasizing the benefits to the recipient. Also, in this part, it is important to answer the possible objections of the person who reads the commercial proposal.

4. The price and its justification

If you can’t indicate an exact price — for example, in the manufacture of complex equipment to order — it is advisable to specify a range of prices. In addition to the price, this block may include calculations confirming the benefit or savings of the recipient.

5. Scheme of interaction

In this block, you should briefly and clearly indicate how the work will be done.

Here are some examples:

  • Application for a bulk shipment of dental alloys.
  • Conclusion of a contract.
  • Purchase of the required amount of dental alloys directly from the manufacturer.
  • Transport, customs clearance.
  • Delivery to the desired address.
  • Transfer of supporting documentation.

6. Brief information about the company that sends the commercial proposal

This section must contain only relevant information, not a history of creation and prospects. If the theme of the commercial proposal is cleaning, it is important to specify how many corporate clients use this service and what the total area daily cleaned by employees is.

7. Call to action

In this mini-block, it is important to indicate what action the sender is waiting for from the proposal recipient. Ideally, it should include a call to action, not necessarily a direct one.

Example: “Upon your request, we will send you a sample contract for wholesale supplies. The offer and price are valid until June 15, 2022.”

8. Contact Information

This section requires no explanation.

Content peculiarities of different types of commercial offers

  1. Offer

For a “cold” commercial offer, it is desirable to indicate the target audience, as the recipients do not know whether they are interested in the offer in principle. If the target audience is indicated, they will be able to identify with it or understand that the offer is not interesting.

  1. The main part

In a “cold” proposal, it should be shorter than in a “warm” or “hot” one — clients who interact with the company or expect a concrete commercial offer from it are more loyal and can take more information calmly. At the same time, in the “hot” variant, there is no point in describing the problem. The main body of the text is written based on what the recipient already knows about the essence of the proposal, not repeating the information they already know but expanding and deepening it.

  1. Processing of possible objections

This block is added only in the “warm” and “hot” commercial proposals. In “cold” offers, recipients may not have objections due to a lack of interest in the proposal in principle.

If the main objection of the client is that you’ll need too much time, you can explain the stages of work, so it becomes clear that a shorter deadline can not ensure adequate quality. If the main objection is that your services are expensive, you can offer various payment schemes, including installments or deferred payments. When there is a lack of confidence in the result, successful cases — examples of completed work — work in favor of your proposal.

  1. The block about the company

The block about the company is important when you’re sending out a commercial proposal to “sleeping” clients who may not remember about the company and to recipients from third-party databases who may simply not know about the company’s existence. You can often do without this block in a “warm” or “hot” commercial proposal or make it very brief.

  1. Additional services

In a “warm” commercial proposal, you can briefly indicate what other useful services or products the company can offer.

  1. Appendices

You can attach additional documents to the text of your proposal: an estimate, calculation, price list, or detailed presentation. Do not insert price lists and estimates directly in the commercial proposal — it may simply not be read.

A few tips for designing commercial proposals

  • Formatting. Use formatting to make the text easy to read and use font sizes to emphasize key points of the commercial proposal. Choose standard and familiar fonts. Times New Roman 12-14 px size is commonly used for documentation.
  • Color scheme. Choose the color scheme harmonizing with the company’s corporate colors and logo. It is important that the background is plain and light and the font is dark. Experiments with the light font on a dark background will reduce the proposal’s effectiveness.
  • Air. As to the proposal’s layout, it is important to leave some free space around pictures and text — designers call it “air.” This way, the information will be visually easier to perceive.
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Conclusion

A competently written commercial proposal will help a business develop effectively, find new customers and investors, and expand the partner network. Do not spare time to edit your commercial proposal so that the recipients find it convincing.

shahbaz46

Hello, I am an author on TimeBusinessNews, a platform dedicated to delivering insightful articles on a range of topics related to business and finance. If you have any business queries or would like to get in touch with me for any reason, please feel free to reach out to me at: boostseomatrics@gmail.com. I look forward to hearing from you