RE: FN-FORUM: Hi all (new here)

date posted 6th March 2008 21:33

Lee Rickler wrote:
> Never give a price, always ask for a budget.

Nice theory, but many clients suspect a rat (possibly justifiably, =
depending
on the integrity of the supplier!) and point-blank refuse to give even
ballpark figures. Fair enough, give it a try (or use revealing =
questions),
but be ready to accept that the client may be reluctant to reveal their
"crown jewels" in the negotiation process!

Tony C's suggestion is good:

> I deal with small companies at the moment & they don't have budgets =
set
> [..]
> I get round that by asking if they want a =A3500 solution or a =
=A35,000=20
> solution (or some variation) if they ask for clarification I explain=20
> that everything is possible, some things take more time, look nicer =
and=20
> work more efficiently and therefore cost more - like choosing between =
a=20
> Smart Car and a Porsche Cayenne...

Being able to suggest a ballpark range of figures, given only very rough
outline requirements, is something that requires previous experience of =
a
range of comparable projects. After 5 years' proposal writing, I'm only =
now
gradually becoming comfortable enough to give ballpark figures during =
the
first meeting, or in response to the initial enquiry e-mail.=20

The key is recognising that one could spend literally days (or weeks for =
the
big enquiries) breaking down detailed requirements and totting up the =
number
of hours the job will take, only to come up with a figure that the =
client
cannot afford, making the exercise a waste of time.

Far better is to get a feel for budget early on (as said, detective work =
and
tactical questions may be required, as many clients won't give figures),
then use this to drive the rest of the approach. You have to bear in =
mind,
of course, that the client is likely to downplay their disclosed budget.

If the client's budget is clearly below the minimum needed for the =
"class"
of project, one can avoid spending too much time on the proposal, or
possibly pass on to a cheaper associate. Otherwise, tailor the
proposal/quote and the project approach (see my previous post) to the
ballpark, giving "economy", "mid-range" and "premium" options.

Cheers, Ben

--
Ben Johnson, Neogic Web Solutions
// design =95 development =95 managed hosting

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