Product Proposals: What Are They?

The competition is tight in the business in which you are constantly seeking new markets and customers to sell products. Many years back, business owners were able to get by with a listing in the local phone book and word-of-mouth recommendations from satisfied customers. But those days are long gone. Now, you need an effective product proposal to pitch your products. As a sales tool, the product proposal should introduce your business, highlight your products, outline your cost, and help your customers understand your product as the right tool for the job.

Meanwhile, in a report by Better Proposal in 2018, the most commonly signed business proposals are those with six pages.

The Common Elements of a Product Proposal

The best first step in writing any proposal is to gather enough information about the prospective customer. This way, the proposal is tailored to that customer’s specific needs or goals. Although it takes more time doing this, your proposal is more likely to succeed. After data gathering, you can now proceed to familiarize the different parts of a project proposal in the list below.

Cover Letter and Title: The first part of a proposal is the introduction section. It is composed of the cover letter and title. The cover letter is a brief introduction to the proposal and it contains your company’s contact information for customer inquiries. After that is the title that is written in bold font style. It should be easily recognizable so that any reader can differentiate the proposal from other important business documents.Executive Summary: The executive summary is the most crucial section of your product proposal. Why? Because it contains all the information a client should know about the product. An executive summary is a condensed-down version of the entire proposal. This means that your audience can decipher what the proposal is about by just reading the executive summary. Product Details: After customer-centered sections, it is time to let your product shine. The body of your proposal must be about how you can satisfy the customer’s needs and desires. So, highlight topics about your products like costs, features, options, benefits, and product summary. You can even include a description of what you are offering and how much it costs. Business Details: The last part of your proposal should convince the customer that you are the best choice to supply the products. Thus, provide pages for topics such as About Us, Company History, Our Customers, References, Awards, and Testimonials. All this will help your customer establish trust in your business.

How Do You Write a Compelling Product Proposal?

If you want to write the winning product proposal, it must look professional and indicate all requirements needed. Pitching a product proposal means competing against other businesses that offer the same products as yours. Because of that, you need to take time to hit all the key points. So, here are some tips on how to do it:

1. Include an Executive Summary

It could not be stressed out enough. The executive summary is the most important part of your project proposal. Since your audience does not have so much time to read the whole proposal, the executive summary will tell them the things they need to know about the product. Additionally, it should also recognize your client’s concerns and shows that you care for their priorities better than anyone else who has already proposed to them.

2. Identify Scope and Work Schedule

Most conflicts arise in the specification. That is why one of the proposal’s main focuses is identifying the scope and benefits. Do this by being as detailed as possible and strive for no ambiguity. In some cases, clients think that you agreed with doing something that was never in the proposal.

3. Paint the Bigger Picture

Imagery is conventional for product proposals because it helps clients digest all the information quickly. When there are images, you give the reader a visual relief and short breaks from the textual and numerical content. By putting all facts into infographics, graphs, and tables, your proposal is easy to read.

4. Describe the Cost

Writing a product proposal could be a tough challenge for being in the business. But even professionals who write business proposals for a living feel the same way. Often, getting the numbers right is quite a challenge in writing a proposal. Yet, clients need to know what they are paying for and what comes across, and what goes beyond the product scope.

FAQs

What are the different types of proposals?

  • Thesis Proposal
  • Bid Proposal
  • Business Proposal
  • Project Proposal
  • Investment Proposal
  • Marketing Proposal

When do you write a product proposal?

If you are in a business that sells products, you should have a product proposal on hand to seek a new target market. A proposal is a sales tool that will help you persuade a potential client to avail of your products.

Hos is a proposal different from a plan?

A proposal and a plan are two different documents. The main difference between the two is that a plan is a written presentation that sets out goals and steps in achieving those goals while a proposal is a call to action that convinces its readers to do something on what is being proposed.

A proposal helps a client choose the best price and contract terms for a product. It means a well-written proposal has a good chance of winning a customer’s heart as it tells them what they want to hear about the product. For more proposal templates, visit our website and unveil a collection of ready-made business stencils.