8.

Proposal development & Negotiating

Set expectations with

customers on what
you are promising to
deliver to generate
profitable business

1.
2.
3.
4.
5.
6.
7.

Understanding of customers objective

Execution plan with milestones
Outline responsibilities
List of deliverables
Costs
Payment schedule & terms
Refund policy

current situation
Specify their end goal post the project
Mention key metrics they will

Document their

measure to determine success

1.

2.

3.

Single point of
contact for
requirements
How quickly will they
need to respond to
queries
Access to servers,
systems, data as
required

Customer responsibilities

1.

2.
3.

Service level for

issues and escalation
processes
Resource availability
schedule
Documentation of
systems and
processes for client

Vendor responsibilities

1.

Budget for travel

as appropriate

and expenses

2.

Make sure you account for

service

tax
3.

Specify number of units (resource

hours or software pricing schedule)

rate of
interest
charged in cases
Specify

of delayed payment
Suggest discounts

early
payment
for

(1-2%)
The Accounts Payable Network, 2010

Ensure services are non-refundable

For products, offer max of 15% of cost in
services

something in return
always when your customer

1.

Ask for

2.

negotiates a term
For any payment negotiation, you can

reference
Include project initiation based on
ask customer to be a

3.

successful Proof-of-Concepts

8. Proposal development & Negotiating