Almost all significant sales of material handling equipment (MHE) and services are ultimately actualised on the basis of a written proposal. This document covers the fundamentals of an Objective Based Selling proposal, focusing on 4 key areas namely:

  1. Reasons for a written proposal
  2. Key elements of an OBS sales proposals 
  3. Proposal additions and variations
  4. OBS Proposal Templates

1. REASONS FOR A WRITTEN PROPOSAL

Customers require written proposals for a number of reasons, including:

  • Clarification of relatively complex details
  • Sharing the information with appropriate decision influencers
  • Comparing competing proposals
  • Legal and commercial reasons

Selling organisations and salespeople have traditionally offered written proposals in order to:

  • Meet customer requests and requirements
  • Clarify relatively complex details of their offer
  • Get it on paper and avoid misunderstandings
  • Comply with legal and commercial reasons

The format of most traditional material handling sales proposals has been and remains, a detailed statement of equipment specifications; price; perhaps some options priced separately; delivery information (usually vague or inaccurate); a brochure; payment terms and conditions; a quick sales pitch, usually based on the concept that “mine has more features so you better buy from me.”

The emphasis in these documents is almost always equipment and price. That is why these have traditionally been called “quotes” (or worse, in some situations, called “bids”). They are quoting documents, not selling documents.

The Objective Based Selling model emphasizes additional purposes and functions of written proposals, from the salesperson’s perspective and also to help the customer. Recognizing these additional, critical functions of sales proposals leads to a sales proposal format which is different from traditional formats and more effective for the salesperson and for the customer organization. From the salesperson’s perspective, sales proposals in the Objective Based Selling model have the following functions:

  • Sell when the salesperson can’t be there
  • Convey information to hidden decision influencers
  • Provide a sales tool for the salesperson’s primary customer contact
  • Compete for funds
  • Compare alternatives – both of which you provide!
  • Provide reference and structure for the personal proposal review
  • Explain the whole proposal, your entire way of doing business
  • Present the proposal in a way that effectively competes and sells
  • Motivate action

2. KEY ELEMENTS OF OBJECTIVE BASED SELLING PROPOSALS

Objective Based Selling maintain that proposals of significance include the following key elements:

The Proposal Frame

This should be both physical and metaphorical. Its purpose is to say to the customer, “Here comes a proposal of significance from a professional company, so pay attention.” Where the proposal is an actual physical document, the physical frame can be a proposal folder, binder, or similar identifying device. Where the proposal is a digital document, a cover sheet with sales company and customer logos can be created, with a project name, date, and other information.

The metaphorical frame is a one-page letter, with important features being: confirming or giving the project a name; thanking the customer; inclusion of key decision influencers’ names; table of contents of the remainder of the proposal; basic recommendation statement; summary that the proposal is based on a lot of work the salesperson and his company have done.

There should be bullet points and lots of white space and if it’s is a paper document, there should be an actual signature. If the table of contents is more extensive, it can be referred to in the letter of transmittal and then made into a separate page.

The letter of transmittal should never be more than one page and should have the salesperson’s name and signature at the bottom, personalizing the offer. If an engineer, manager or other person from the salesperson’s company was heavily involved, a second name and signature should also appear on the letter of transmittal.

Summarized statement of customer objectives

This is one of the most distinguishing characteristics of Objective Based Selling proposals. These customer objectives should be stated in summarized bullet form, following a statement such as: “As we understand them, XYZ’s objectives in the Warehouse Upgrade Project are:” Following a listing of the objectives, the simple statement should be made: “These are listed in our understanding of their order of priority.”

What better place to begin a sales proposal than with the objectives of the customer?

Listing of key customer parameters, or spec

Again, these should be in bullet form, following a statement like: “Key parameters of XYZ’s operations for the Warehouse Upgrade Project include:”

These are the circumstances understood to be important in achieving the customer objectives.

Equipment specification sheets; drawings; other details of the offering

These should be highlighted in some manner, including now any distinguishing characteristics of offerer’s equipment or services but again, highlighting how these distinguishing characteristics relate to customer objectives and parameters.

Benefits (to the customer) of acting on your proposal

Here’s where the salesperson gets specific on how his proposal best helps the customer meet their objectives within the specific parameters of their situation.

Bill of material, with quantity, specifications, investment, commercial terms

Okay, it’s time to get specific, including the price. The price should be listed as an investment, implying the customer gets something back for it, it’s not just an expense.

Delivery information

Unless including a reverse time-line (explained in our Blog named “Obtain Commitment”), it is recommended no information be included on delivery.

Alternatives offered

Without pricing, this section of the proposal should explain alternatives considered for recommendations, with clear explanation of how these differing alternatives vary in meeting customer objectives.

Proposal support

It’s time to give “proof statements” about how your company can be trusted to do this project and help the customer meet their objectives within the parameters of this situation. Include a list of similar jobs successfully completed, or if possible referrals. Other proposal support can include insurance certificates; seller’s organization charts; pictures of previous jobs; lists of suppliers; lists of awards earned by selling company; list of project team members including their experience and qualifications, the list is almost endless.

3. PROPOSAL ADDITIONS & VARIATIONS

Some proposals are so important, significant, large, or complex that additions above the key proposal elements are justified and needed. These can include:

  • Statement of how customer’s job is being done now, or what is currently being used
  • List of key members of sales follow-through team
  • Reverse time-line for implementation
  • Before and after drawings
  • Proposal summary. This should be used for complex proposals with many different types of equipment proposed and priced separately, or complex proposals with several phases
  • Cautions. Positioned after the Investment section, these can be included where customer has mentioned implementing solutions that may have operational, time frame, or even safety risks.

How long should Objective Based Selling proposals be? Long enough to get the order. This, of course, is a judgment call based on the specific situation, including how large the job or project is, or how important it is.

By pre-structuring word processed templates, salespeople can quickly choose and begin to structure the appropriate length proposal. The important thing is not the length of the proposal, but its effectiveness.

4. OBS PROPOSAL TEMPLATES

Customized by individual salespeople and their companies, salespeople should use 3 Objective Based Selling proposal templates, namely:

  1. A Long Form for larger, complex, more significant projects
  2. The Proposal Sandwich, for significant but simpler projects or purchases
  3. The Simple, one-page form for simple purchases

DOWNLOAD THE FULL ARTICLE AND MORE HERE.

Some recent data concluded that up to 75% of formal sales presentations lead prospects to feel the salesperson didn’t understand their needs.

In this report, Objective Based Selling helps MHE and capital equipment salespeople develop their skills and knowledge in formal presenting, broken down into 6 key areas:

  1. Preparation
  2. Starting a Presentation
  3. The Agenda and Slide Transition
  4. Ending a Presentation
  5. What To Do & What Not To Do
  6. Key Takeaway

1. PREPARATION

  • Structure your presentation slides (item 3 below) in line with how you would present an Objective Based Selling written proposal
  • Bring as much supporting material as you can such as brochures, case studies, samples, data analysis & proposal documents. Only distribute if required
  • Check that you are bringing all the required equipment such as your PC or MAC, VGA to HDMI converter, power cord, slide mover, laser pointer, projector & spare presentation on a memory stick
  • Test all the equipment to check that it is in good working order
  • Give attention to your attire and personal grooming
  • Arrive at your venue in good time, a minimum of one hour early, for setting up and testing

2. STARTING A PRESENTATION

Prior to starting your presentation, don’t hand out the PPP, proposal or brochures. Note paper, preferably with a branded pen, is ideal. Your first slide should show the AGENDA. Display this while doing your introductions.

THE HOOK – This is a short compelling story or statistic that clearly demonstrates that you understand what they want to achieve with this project.

SELF INTRO & PREVIEW – 1 or 2 interesting things about you or your company followed by an overview of the agenda slide. Tell them how long you will take to cover how your proposed solution will add value and meet their objectives.

3. THE AGENDA & SLIDE TRANSITION

Many salespeople start a formal presentation indulgently chatting about how wonderful their company is; how long they have traded; how many service engineers they have; service response time; fleet size; amazing company KPIs etc. While these issues are important (as Proposal Support), you primarily need to focus on how, through the project work you have done, you completely understand your customer’s needs and that your product or solution meets and exceeds those needs. For MHE and capital equipment projects, Objective Based Selling recommends the AGENDA and Presentation flow below:

  • Project background
  • Company Objectives
  • Key Parameters
  • Supplier recommendations and customer benefits (including alternatives)
  • Bill of Materials and Investment Profile
  • Proposal Support

SLIDE NAVIGATION – As you navigate through the topics, refer back to a continuously updated agenda slide, with previous items marked as completed. Participants appreciate knowing which point they are at in a presentation and an updated agenda slide acts as a transition road map.

For more on Objective Based Selling written proposals, that sell when you can’t be there, CLICK HERE

4. ENDING A PRESENTATION

This is just a guide and not set in stone, but we recommend:

  • Time permitting, tell them a short, compelling, story that relates to this project. This is normally a similar project, with a customer they may recognise, where your solution added real value (this can also be covered in the Proposal Support section in the form of case studies).
  • Make a power statement, sometimes called Key Takeaways, that crystallises why your solution meets the customer’s needs. You can use a final slide summarising your solution and the value it brings, then say “for all the reasons we have just reviewed together, I am confident that this solution will bring you that value!”
  • MHE and capital equipment projects can be complex, with multiple decision influencers and competitor bids. As such, it’s unusual to be awarded the contract immediately after your presentation. Therefore, in order to maintain momentum with the project, it is good practice to establish what further actions are required by asking a simple question such as “what are the next steps in this project?” or “can we allocate some time tomorrow to review next steps in this project?”

5. WHAT TO DO & WHAT NOT TO DO

Let’s cover WHAT TO DO first

  • Put much thought and planning into these events. If you do you will outperform your competitors because many competitors don’t do this
  • Smile and make eye contact almost all the way through the talk
  • Use small subtle postures and gestures and no uncontrolled movements
  • Cut down on the coffee prior to your talk. It de-hydrates and if you are only 5% dehydrated it can compromise your performance by up to 20%
  • Pause after delivering an important piece of information. This gives the audience time to absorb the information plus they get a short rest from your voice
  • If the project has a name, add it to your agenda slides, top left or right. If your customer has a branded logo, add it to every slide in the bottom left or right
  • Phone your principal contact, your Champion, before your presentation and ask “have there been any significant project changes since we last spoke?” If so, you’ll be prepared for these last-minute changes plus you signal that you are really plugged into this project, which will garner trust

Now let’s cover WHAT NOT TO DO

  • Don’t ever deliver a sales presentation until you completely understand your customer’s needs and how your solution meets those needs in full
  • With the previous point in mind, that you fully understand your customer’s needs and objectives, don’t oversell yourself by talking about features they don’t need
  • You need to keep your audience engaged throughout your talk. A good way to keep them engaged is to not speak continuously without interruption for more than 1 minute. OBS recommends using Feedback Loops where you ask the audience, or a specific person, questions such as “Does that make sense?”, “Have I got that correct Amanda?”, “Is this information still accurate Stephen?” or “Would it help if I expand on this important issue?” If at any point you notice your audience is disengaged, maybe they are looking away, looking at their watches, not asking questions or even yawning, then you are losing them and you need to STOP. Again, use Feedback Loops to re-engage them by asking a question such as “I’m starting to get a sense that I’m off track so help me out. Have I missed something here?”
  • Don’t ramble on or get long-winded with lots of detail
  • Don’t clutter your notes with too much detail; you’ll get lost
  • Don’t use complex slides with too much writing. Use headings, no more than 3 or 4 bullet points & pictures
  • Don’t speak too softly or with fillers like “um, err, ah, you know…”

6. TAKEAWAY

  • Many projects are won and lost during sales presentations, so make time to plan and prepare. Then plan and prepare some more. In doing so, you out-perform your competitors
  • You sell more MHE or capital equipment by focusing on the customer instead of the stuff!

DOWNLOAD THE FULL ARTICLE AND MORE HERE.

“Closing the sale” techniques are taught in many sales seminars, online, in tapes, books and coaching sessions. Traditional techniques commonly taught include:

  • The Trial Close: Encouraging the client to do some less significant, non-buying tasks or statements escalating in importance
  • The Old Standard Choice Close: “Would you prefer the new truck or the used truck?”
  • The Processing the Paperwork Close: “Can we get the paperwork started?”
  • The Assumptive Close: Moving forward with project details, delivery & paperwork on the assumption that the client is buying from you
  • The The Price is Going Up, Better Buy Now Close or The To Meet Your Delivery, We Better Order Now Close: Caution; customers often don’t believe this!
  • The Puppy Dog Close: “Let’s just bring one out and if you like it, we’ll leave it and send you the invoice.”
  • Simply asking for the order: “May I put this on order for you?”

These techniques should be used by a material handling salesperson in the Objective Based Selling sales process whenever a Classic Closing Situation occurs whereby:

  • The primary decision maker is present in person or on the phone
  • Objectives & parameters have been established and prioritised
  • Price or method changes by the client are not significant
  • The client needs to make a decision soon

The material handling salesperson should draw on one of the classic closing techniques to obtain the order. There are, however, two distinguishing characteristics of the material handling sales environment that limit the effectiveness of these techniques:

  • Due to the significance of many material handling sales and the number of decision influencers involved, purchasing decisions are most often made when salespeople are not actually in the room. Also, with multiple decision influencers involved with purchasing in larger organisations, more than one sign-off or approval is often required and sometimes in a specific sequence.
  • Another challenge is the issue of modifying proposals. The salesperson may be in a proposal review meeting with all the right people and they may like the proposal and indeed respond to a closing technique. Nevertheless, when proposals need to be modified as a result of new facts or input from that meeting, the agreement to purchase may be subject to change too.

IT’S A COMMITMENT TO AN ONGOING RELATIONSHIP

To be effective in closing sales in the material handling sales environment, the salesperson must first understand that in any significant purchase or project, the decision to go with a particular proposal is more than a simple purchase; it’s a commitment. It involves committing the buyer’s organisation to the seller’s organisation. To their way of doing business, follow-through and capabilities.

For significant material handling projects, the act of earning the order is often not a simple sales trick at the moment of decision. Rather, the client commitment is the logical extension of a process outlined in the Objective Based Selling model and OBS diagram. During this process, key decision influencers have come to trust the salesperson’s understanding of their situation and associated recommendations. The personal relationships developed provide the assurance for the client that the decision to proceed with this particular proposal is the correct decision.

Using the Objective Based Selling model, the salesperson does not need to be in the room when the purchasing decision is made because the salesperson has:

  • taken the time to understand the client’s business and personal objectives and to prepare a proposal in which these are clearly outlined
  • provided responsive recommendations with alternatives
  • provided appropriate support for the proposal
  • built personal professional relationships

TRIAL CLOSES & BUYING SIGNALS IN OBJECTIVE BASED SELLING

As mentioned above, the Objective Based Selling process offers many opportunities for two types of trial closes to be used when:

  • There is client agreement on something other than the actual decision to buy. Agreement trial closes can occur during identification of objectives & parameters, when prioritising objectives and when considering alternatives. Even calling a salesperson back and agreeing to meet is a trial close.
  • The client does something proactive at the request of the salesperson. This indicates growing confidence in the salesperson and the proposal. An even more positive trial close occurs when the client takes proactive steps to work with a salesperson. This includes: supplying extensive technical information; introductions to other decision influencers; supplying a reference; helping to instigate or attend a review meeting; facilitating presentation of a propsal or a product demonstration; going on a site visit; visiting a supplier’s facility or asking for a modified proposal.

Alternatively, reluctance or refusal to do these things, or suddenly not returning calls are definitely negative buying signals! When buying signals cease in response to trial closes, use open-ended questions such as:

  • “What’s your hesitation?”
  • “What’s changed?”
  • “Where am I coming up short of your expectations?”
  • “What should I be doing to work more effectively with you?”
  • “What should I be doing to help you implement this project?”

OBJECTIVE BASED SELLING PROPOSALS HELP GAIN COMMITMENT WHEN THE SALESPERSON CAN’T BE THERE

When traditional closing situations don’t exist, the single most effective closing tool to gain client commitment is the Objective Based Selling proposal. These speak to the decision influencers the salesperson can’t meet.

The Objective Based Selling proposal starts with client objectives and parameters and builds a bridge to the salesperson’s recommendations, or alternative recommendations. It also provides proposal support, including references.

The proposal, along with the proposal review scrum or review meetings, gains commitment and closes sales even when the salesperson isn’t there. Again, using the Objective Based Selling model and process, if there is a delay in ordering, proposal support extends contact with the client, possibly creating a classic closing opportunity or a proposal modification opportunity which leads to the close.

A SPECIAL CLOSING TECHNIQUE: THE “REVERSE TIMELINE”

In many material handling projects, use of a reverse timeline can be an effective closing technique. It can even work if the salesperson is not present when the key decision influencers are making their decisions such as at a meeting.

In most material handling projects, particularly those of significance, at some point in the project a time frame (perhaps an operational deadline) becomes critical and becomes a driving force for making project and purchasing decisions.

Clients routinely attempt to pressurise salespeople with these time frames, saying “I’ll give you the order if you can meet this deadline.” This is often an unrealistic deadline, created by client procrastination in making a decision.

Salespeople can anticipate this and if they act early enough to put a convincing, honest reverse timeline in writing, actually use it as a catalyst for the client to act. The beauty of this technique is that it starts with the client’s own deadline, their own time objective. It then builds in the necessary steps to achieve effective order implementation, pinpointing a time at which the client must place an order to meet their own deadline.

For an example Reverse Timeline CLICK HERE

The level of detail here gives credibility to the information and it also reminds the client of all the steps required to meet the objectives. It’s a sequence chart that gives the client confidence that the salesperson has done this before and knows the process. If it is presented alongside the proposal on a specified date, it immediately and helpfully puts pressure on the client to come up with a decision. Why not go with the salesperson who clearly knows what they are doing?

Compare this approach to the normal material handling salesperson’s approach to providing delivery information such as: “delivery is 90 to 120 days ARO” which is not only very vague (so is that 90 days, 120 days or somewhere in between?), incomplete (delivered or operational?) but also assumes that the client knows that ARO is short for After Receipt of Order.

SUMMARY

  • Traditional closing techniques should be tried where the right conditions exist, with relatively simple decisions, where time is becoming urgent.
  • Due to the significance of the sales process, the ordering process in material handling is really the act of making a commitment to the salesperson and the company. In this case, traditional closing techniques often don’t work effectively because the salesperson is not in direct contact with the client when relevant decisions are made.
  • Trial closes should be used throughout the Objective Based Selling process, obtaining client agreements and proactive actions.
  • Committing to the salesperson becomes the logical culmination of the confidence built in the Objective Based Selling process. The OBS sales proposal is a major key to obtaining this commitment.
  • Reverse timelines can be effective closing tools in many material handling sales situations where client time objectives are critical or urgent.
  • If buying signals cease, use open-ended questions to help get back on track or to determine how much more time you need to commit to the project.

DOWNLOAD THE FULL ARTICLE AND MORE HERE.