![\"\"](\"https:\/\/www.bidsketch.com\/blog\/wp-content\/uploads\/2017\/09\/proposal-pricing-top.png\")
<\/p>\n<\/p>\n
The pricing proposal is the scariest moment in working with a potential client.<\/span><\/p>\n You\u2019ve been talking to them, they like your work. \u00a0Things are going well. \u00a0Then they ask about your fee.<\/span><\/p>\n You reply with a short, friendly email listing a reasonable quote. \u00a0Or, if you\u2019re a bit more savvy, you write up a quick invoice estimate.<\/span><\/p>\n This is where two thirds of potential clients cut and run.<\/span><\/p>\n Why do so many prospects balk at a perfectly reasonable fee?<\/span><\/p>\n The short answer? \u00a0They don\u2019t.<\/strong><\/span><\/p>\n Clients don\u2019t bail because of the cost. \u00a0They back off because of the cost presentation.<\/span><\/p>\n It\u2019s not rational. \u00a0But it\u2019s true. \u00a0Because of basic human psychology, leads look at a traditional pricing proposal and get spooked enough to turn you down two out of three times.<\/span><\/p>\n Even though they were probably the ones that approached you in the first place.<\/span><\/p>\n What if you could style your pricing proposal to land more customers AND not have to compromise on your fees?<\/span><\/p>\n You can.<\/span><\/p>\n But before we get to that, let\u2019s take a look at the shortfalls of traditional pricing proposals. \u00a0There are two kinds, and each one has some significant shortcomings.<\/span><\/p>\n <\/p>\n You know you\u2019ve done it before. \u00a0A quick, informal message, with a number stuck somewhere in the paragraph: <\/span><\/p>\n \u2018Sure, I can do [insert service here] for $[insert number here].\u2019<\/em><\/span><\/p>\n<\/blockquote>\n One glaring issue is that the informal email quote turns the freelancer\/client relationship into a Yes or No, All Or Nothing equation. \u00a0You have just one chance to get it right, and there\u2019s no opportunity to offer enhanced value for your client.<\/span><\/p>\n Another problem is that the email quote nails the client\u2019s focus to the price, rather than the results the client is looking for.<\/span><\/p>\n This leads into another issue: bargain hunting.<\/strong><\/span><\/p>\n When the only difference you offer from your competitors is a price point, clients will go shopping for the best deal they can get.<\/span><\/p>\n Lastly, one of the biggest problems with the email quote is that its informal style can deter big clients.<\/span><\/p>\n High-value customers are often more comfortable with a certain sheen of professionalism. \u00a0You might do great work, but if the casual nature of your email quote makes the client uneasy, they\u2019ll probably take their business elsewhere.<\/span><\/p>\n Okay, so no informal email quotes. \u00a0What you need is something a little more professional. \u00a0Something that opens the door to more options, more value.<\/span><\/p>\n A list of services you provide, each with an hourly rate, totaled up in neat columns with a final tally at the end. \u00a0Everything you\u2019re offering is laid out in polished, exhaustive detail. \u00a0What could be more professional?<\/span><\/p>\n Sending a client an estimated invoice might seem like the perfect way to quote a price, but it comes with its own set of big problems.<\/span><\/p>\n First, charging an hourly rate take the client\u2019s focus away from the results they\u2019re asking for, and emphasizes units of time or the cost required per task.<\/span><\/p>\n Also, labelling services invites clients to compare your prices with your competitors\u2019. \u00a0You\u2019re commoditizing your labor<\/em>.<\/span><\/p>\n You offer a special service, a real solution for the client. \u00a0But when you let the dollar value of your work become the focus of communication, you\u2019re lowering yourself into a vast pool of virtually identical competition.<\/span><\/p>\n In the commodity space, work drops straight to the lowest bidder.<\/span><\/p>\n Invoices can also make things too complicated. \u00a0A list of various services, each with its own dollar cost, quickly becomes cluttered with options and add-ons.<\/span><\/p>\n If a client is confused, they probably won\u2019t hire you. \u00a0Fees should be simple and communicate value.<\/span><\/p>\n On top of that, the human brain\u2019s structure makes people more motivated to\u00a0avoid losses than to pursue gains<\/span><\/a>.<\/span><\/p>\n When a client sees that neat list of fees you\u2019ve written up for them, each individual cost is hitting them with increased psychological weight.<\/span><\/p>\n That just doesn\u2019t sound fun.<\/p>\n So invoice pricing proposals are out, too.<\/span><\/p>\n What you need is a proposal that sets you apart from the pack.<\/span><\/strong><\/p>\n A proposal that is professional, but not confusing or intimidating.<\/span><\/p>\n A proposal that tells the client that you can solve their problem, and that your fee is nothing compared to the value they\u2019re getting from you.<\/span><\/p>\n Simply put, the bundled pricing technique puts the focus squarely on\u00a0the client\u00a0<\/span>and the solution to their problem, rather than the time or service you\u2019re putting into the project.<\/span><\/p>\n It encourages the client to switch their mindset from loss avoidance to the embrace of opportunity.<\/span><\/p>\n If that picture is too starry-eyed for you, consider this: Traditional pricing proposals are accepted 34% of the time.<\/span><\/p>\n Bundled pricing proposals are accepted\u00a047% of the time<\/span>.<\/span><\/p>\n Yeah. \u00a0Just changing the way you present your fee can\u00a0increase your acceptance rate by more than a third<\/span>.<\/span><\/p>\n How do we know this?<\/p>\n At Bidsketch, we recently researched pricing on 25,000 proposals and found that the most profitable proposals were doing a few key things.<\/p>\n You can view the full infographic based off our research, right here<\/a>.<\/p>\n We also created the following proposal templates based off our proposal research, that you can download for free:<\/p>\n 1. Marketing Proposal Template<\/a><\/p>\n This proposal template for marketing projects includes a worksheet, multiple designs, and uses the bundled pricing technique.<\/p>\n 2. Website Proposal Template<\/a><\/p>\n Website proposals can be a pain to write from scratch, with the proposal bundle above, you’ll get multiple templates, worksheets, and even a retainer version.<\/p>\n 3. Agency Proposal Template<\/a><\/p>\n Your ability to land agency clients largely depends on focusing on what agencies deliver that consultants and freelancers can’t. This proposal uses everything we learned in our research to help you land your next client.<\/p>\n 4. Mobile App Proposal Template<\/a><\/p>\n Proposals for mobile projects are similar to ones for software development (with a few key differences). This template uses the right structure to help you land your next deal.<\/p>\nThe Email Quote<\/span><\/h2>\n
![\"\"](\"https:\/\/www.bidsketch.com\/blog\/wp-content\/uploads\/2017\/09\/proposal-pricing4-550x167.png\")
<\/p>\n\n
The Invoice Estimate<\/span><\/h2>\n
The Bundled Pricing Technique<\/span><\/h2>\n
![\"\"](\"https:\/\/www.bidsketch.com\/blog\/wp-content\/uploads\/2017\/09\/proposal-pricing3-550x147.png\")
<\/p>\n
![\"\"](\"https:\/\/www.bidsketch.com\/blog\/wp-content\/uploads\/2017\/09\/proposal-pricing5.png\")
<\/p>\n