Tips for Selling Value

Happy Friday,

You inherit a Ferrari but refuse to spend $500 for the specified oil change, instead paying a guy $50 to “put some oil in it.” Eventually, the engine fails—replacement cost - $100,000. 

 The cost of a proper oil change is $500. The value of a proper oil change is $100,000. So it is with engineering. 

Here are some tips for selling more value and less cost:

1)   Focus (more) on building strong trust and loyalty with your clients. The road to success is paved with trust.

2)   Know your client’s overall situation, not just what’s in the RFP. Better context begets greater relevance and more influence.

3)   Be a proactive advisor and recommend needed studies and projects; don’t wait to be asked.

4)   Put the cost of engineering into perspective. Refer to it in the context of the entire project lifecycle cost and its implications on the much larger costs of construction, equipment selection, O&M, and project financing. Small but consequential. Think oil change.

6)   Discuss opportunities to add value with the client before preparing any scope and fee.

7)   Prioritize sole-source work and repeat business. De-prioritize competitive proposals.

8)   If you’re stuck duking it out with a competitive proposal, include a brief but compelling discussion of the opportunities to increase project value and allow the client those options. Don't be vague; be EXPLICIT so they're easy to understand, hard to deny, and easily repeatable.

9)   Firmly claim the high moral ground by showing that your motivation is in the public and client's own best interest.

10) Don’t cow-tow! Project a confident, authoritative demeanor consistent with the importance and responsibility of your profession.

This last one is very specific, but I have to add it:

DON'T start a proposal cover letter by thanking the client for the opportunity to propose (unless you believe your team really is that undeserving and pathetic). It sends precisely the wrong message. Set the correct tone by demonstrating confidence in your team and the value they'll deliver if the client is wise enough to select them. See #10.

That's it. I hope you have a terrific weekend and a mentally stimulating week next week!

Dave

Feedback and blowback, hit dave@goodnewsfriday.com

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Written by me, not ChatGPT, with speed assist and blunder avoidance by Grammarly.