Since we started over a year ago we've had numerous proposals where people have asked us to work with them and write up a proposal. However over half the time when we finish the proposal the prospective client responds with "Oh wow, that is way out of my price range." I've checked our prices with other developers and have been told they are reasonable.<p>Recently we've after initial talks with possible clients, if we feel they do not understand the size or cost of the project, will ask them if they understand the cost and time requirements of the project. We've had a mix response on this.<p>We worry sometimes the ball park is going to be too large, and possibly scare them off. However it is necessary as we don't want to waste our or their time.<p>How do you handle this situation?
Why aren't you charging for your proposal work? I'm dead serious.<p>There is little downside to doing this once you get over the shock of such a "callous" suggestion that the customer actually pay for your technical and skilled analysis of their particular problem.<p>First, anyone who won't pay for the problem analysis and recommendations will not pay for the end result of a project that results from a free proposal either. This is mainly because they probably aren't as invested in the solution as you (or even they) think they are. The notion of "scaring someone off" is fantasy; better to do it in 5 seconds than after 20 hours of work. If a client is going to go forward with your project, they will pay for the expert advice. They do this already with their lawyers, accountants and other service providers.<p>Second, you do need to review your services. It is evident that if you are losing greater than 50% of your proposals, and yet other developers charge your prices, one of the following is occurring:<p>1. Your proposals suck. (ie you are not selling your services well enough)<p>2. You are targeting the wrong clients (easy to do if you are giving away your proposals)<p>3. You are possibly mis-matched for your target industries - size, etc.<p>Assuming you are competent, it is very likely that you are simply wasting too much of your time with prospects you haven't properly qualified.<p>The other thing you can do when you get the "out of my range" comment is to ask what is the range. At that point, you can provide a solution (again on fee) that addresses a subset of the problem, at a easier to swallow price. It also allows the option for them to use your services again in the future, which could actually net you more fees.
Ask them what budget they have to work with, and provide two options - one within their budget and one that goes over. Understanding their budget and who pays is important.
Provide a value proposition.