How To Create A Clear Proposal

Welcome to Sales Skills For Founders, a weekly newsletter with one actionable skill for sellers who are tired of tips, tricks, and scripts. AI isn’t going to close deals for you so let’s master sales, one skill at a time.

Today’s Skill: Creating A Clear Proposal

Complex pricing and proposals hurt your credibility and attention. It leads to lost business. We won't cover how to price your products today. But, your proposal must be very simple for clients to understand.

Your proposal needs to answer three questions:

• What does it cost?

• What are they getting?

• Why are they getting it?

You can be direct and concise, or you can overcomplicate things. Unfortunately, I often see people do the latter.

→ Too many options or SKUs.

→ Paragraphs instead of line items

→ Confusing total costs of services

Reminder: Your clients are likely hearing your pricing for the first time. They may still be learning about this specific problem and how your product or service can solve it. They likely don’t know all the industry terminology or product jargon either. Don’t overwhelm them.

Step 1: Make It Simple

Simple = understandable. If it looks confusing it probably is.

Forget giving them seven different pricing options with add-ons and extras.

✅ One Price is ideal, and you can discuss alternatives if needed. At most, give them two varying options and stop there.

Step 2: Make It Legible

Yes, legible. It needs to be easy to read, with no walls of text or distracting numbers scattered all over. Lay it out clearly so they can see the total amount and what it includes.

People read from left to right, and most are comfortable with table formats (think Excel). Make it clear with:

• Specific line items

• Table format

• Clear totals

Step 3: Make It Digestible

After a pricing call, send the proposal document. It should be simple, legible, and concise. You don’t need a 30-page document detailing every aspect. Focus on these four sections:

1. Pricing Table: Line items with descriptions and specific costs.

2. Descriptions/Statement of Work: If needed, add details to each line item. Include a statement of work if relevant. Each description should tie back to a line item in your table.

3. Order Details: Cover payment terms, renewal info, or any other conditions. Keep it short and direct with a few bullet points.

4. Signature Section: Add signature lines to turn the proposal into a contract, if you are going to need this signed to start the partnership.

The Proposal’s Purpose

The proposal tells your prospect what it costs, what they’re getting, and why they’re getting it. This document should also function as the contract if they decide to move forward.

Pro Tip: If you have terms and conditions, link to them on a specific page on your website. This eliminates extra pages on your proposal and helps you update Terms & Conditions more regularly without having to remember Ts & Cs for each client.

For example, here are two companies I’ve worked for who have done this well.

• Brightly Software Terms

• Granicus Terms

Make It Easy to Replicate

Make your proposal format simple. It should be easy to customize for each prospect. It must also explain what it includes, in enough depth. There is no "perfect" way to lay this out. But, following these principles keeps it clear and effective.

To get you started, here’s a sample proposal template you can use:

Sample Proposal Template

Pro Tip: Create a template that can be replicated 90% of the way for each prospect. This way, you can customize the appropriate areas without reinventing the wheel each and every time.

Simplify your proposal, and you’ll reduce confusion for your buyers. When your proposal is easy to understand, you’ll make it easier for clients to choose to work with you.

Your Action Items:

Create A Proposal Template.

If you have one, great! Include the suggested items above so you are ready for your next call.

If you don’t have one, utilize the template above and put your spin on it.

Don’t overthink this. You can spend a ton of time creating a slick proposal and maybe it’s something you could prioritize in the future. However, it’s mostly unnecessary. Follow the steps above and hit the key points.

Your prospects will thank you for making things crystal clear!

Speaking of that, we’ll keep on this topic for next week’s newsletter as we’ll be discussing communication.

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