Tip26 - Here’s a Proposal For You: Get It In Writing!

Long-time readers of this newsletter know that we constantly mention how the personal aspects of this business are so important. The fact that the person filling the machines is usually the owner; the face-to-face contact between you and management; and even details like “Thank You!” notes all make this a very friendly, personable business. So it’s easy to lose sight of the fact that this is a business. Remember that you have a powerful business combination by blending the friendliness with professionalism.

An important element is your refreshment service proposal. Proposals are traditional business tools, often used when a prospective account wants to know more details before making a final decision. It’s also easier to prepare a proposal for a prospective location once you’ve met the management, assessed their needs, and figured out products and pricing.

Some people think a request for a proposal is really a brush-off, but successful professionals know that it means they’ve nearly reached an agreement—once the account accepts the proposal, the installation is accepted.

So here’s an idea for you: Why not include a proposal in your Self-Promotion Brochure? Once you know your other customers’ likes and dislikes, your profit margin, and your inventory, it’s fairly simply to prepare a standard format business proposal. Obviously, if a location is out of the ordinary, you may wish to further custom-tailor a separate proposal that deals specifically with their needs.

There are elements common to most business proposals, and here are some key items:

• A cover letter on your company stationery, with a letterhead and maybe a logo if you have one. If you don’t have any stationery like this, get friendly with print shops like Kinko’s; you’ll find business stationery and the staff at the printer’s should be able to help you create a professional-looking letterhead.

• A brief description of your company; including how long you’ve been in business, other happy clients, and so on. It’s important to show that you are proud of your company, that you know your abilities and responsibilities, and that you’re committed to maintaining your good reputation in the business community.

• Describe your equipment.

• Describe how your service works; remember that the very concept of a free refreshment service is strange to some people. You can describe the various services you offer, especially if you offer coffee, water, microwaveable products, and so on. Tell about the national name-brand products you can provide (you may wish to include a sample menu-planner), and the average pricing structure. If you offer any special pricing or promotions from time to time, describe them as well.

• Once the location’s management has agreed to place your equipment, it’s a good idea to review the Placement Form with the manager, fill it out and sign it. Make sure the manager understands the terms of your equipment placement and has your phone number(s) if there’s any change to their service needs.

Dana Bashor