By Mike Crandall
July 31, 2024
Stop writing proposals
Do you like wasting your time? Do you think your prospects or clients like their time wasted?
I imagine the answer to that is a resounding “No!” Yet when you respond to RFPs, create the “perfect” presentation, or even quote a number off the top of your head without the right information, you may be doing just that.
There is a silent killer when it comes to your margins, and it’s called unpaid consulting. This seemingly innocuous practice, often disguised as quotes, bids, proposals, or demonstrations, can erode the efficiency and profitability of any business. Let’s delve into this pervasive issue and explore ways to safeguard your team and organization.
The cost of unpaid consulting
Think about your team, your organization, and yourself. How often do you dedicate time and effort to crafting quotes, bids, or proposals that never materialize into actual business? It’s a common scenario: responding to every request with what feels like diligence yet seeing no tangible return.
Recently. I received an unsolicited email from a young professional inquiring about our training services on multi-generational communication. She requested details and pricing. I explained that while we offer training in this area, the scope can vary significantly—from a brief 45-minute keynote to an extensive multi-day session with pre-work and follow-up.
Her reply was telling. She asked, “Why did other people just give me a price without any variations?”
Offering a blanket price without understanding the specific needs or context is a waste of your time and energy—theirs. How can you genuinely assist a potential client if you haven’t first diagnosed their unique situation? Are you stopping conversations before they even begin?
How to avoid this
This is where the concept of unpaid consulting becomes evident. Too often, businesses are drawn into providing detailed insights and recommendations—essentially consulting—without any commitment from the potential client. This practice drains resources and diverts focus from clients who are ready to engage and invest.
To combat this, it’s essential to establish a robust process, system, and set of behaviors to handle requests for quotes, bids, proposals, and demonstrations. Here are a few strategies to implement:
Qualify requests thoroughly
Before diving into the details, ensure that the potential client has more than interest but an actual pain you can solve. Ask probing questions to fully understand their challenges.
Set clear expectations
Make sure they understand your sales process, and there will be things they have to do to move the process along.
Educate your team
Train your sales and business development teams to recognize and manage unpaid consulting scenarios. Empower them to steer conversations toward value-based discussions rather than immediately jumping to pricing.
If your organization struggles with the inefficiencies of unpaid consulting, consider revisiting your sales process. Where do you find your team giving up more than they should just to keep the conversation going?
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About Mike Crandall
Mike Crandall lives in Edmond, Oklahoma. He is a Consultant, Coach, Trainer, Speaker, and Author focused on the Subconscious Psychology of Human Interaction and Motivation. His firm specializes in Elevating Leadership, Management, & Sales Performance for Proactive Business Growth. Mike is based in Oklahoma and serves Visionary Clients across the United States. He can be reached at (405) 844-1700.