Day on-site training and workshop with key personnel, guaranteeing you



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1 day on-site training and workshop with key personnel, guaranteeing you

  • 1 day on-site training and workshop with key personnel, guaranteeing you

  • At least 5 quantified, differentiated, evidence-backed value props to start using immediately in your proposals and marketing materials

  • For just $5,000 plus travel





  • pValues – pCosts > pValuenba – pCostnba



  • If

  • pValues – pCosts > pValuenba – pCostnba

  • WIN



  • If

  • pValues – pCosts > pValuenba – pCostnba

  • LOSE



  • pValues – pCosts > pValuenba – pCostnba



  • pValues – pCosts > pValuenba – pCostnba



Imagine you’re buying a fleet of vehicles. Gas costs are your biggest concern.

  • Imagine you’re buying a fleet of vehicles. Gas costs are your biggest concern.

  • Which is more useful?

  • “Our cars offer very high gas mileage.”

  • “Our cars average 50 mpg.”



  • Or…



Imagine you’re worried your factory isn’t running efficiently enough.

  • Imagine you’re worried your factory isn’t running efficiently enough.

  • Which is more helpful?

  • “Past clients have seen efficiency gains of up to 18%.”

  • “Based on our experience with past clients, we estimate that you’ll achieve efficiency gains of 12% to 16%.”



  • Why?



Quantification increases the persuasiveness of a value proposition by 73% on average.

  • Quantification increases the persuasiveness of a value proposition by 73% on average.



Evidence increases the persuasiveness of a value proposition by over 30% on average.

  • Evidence increases the persuasiveness of a value proposition by over 30% on average.



Including

  • Including

  • quantification,

  • differentiation and

  • evidence

  • increases the credibility of a value proposition by 238% on average



Increase in win rate from the four best practices of proposal writing averages:

  • Increase in win rate from the four best practices of proposal writing averages:

    • Persuasive structure: 12%
    • Strong value: 12%
    • Client-centeredness: 8%
    • Clear language: 7%


If you have a 25% win rate right now

  • If you have a 25% win rate right now

  • Just by quantifying, differentiating and providing evidence for the value proposition you’re already proposing to them, you increase your win rate to 28%

  • For every $10 million in bids, that’s an extra $300,000

  • For every $10 million in wins, an extra $1.2 million



Anything that allows

  • Anything that allows

    • Comparison
    • About a meaningful area
    • Of their specific problem
    • In a credible way


Mere existence of uncertainty ≠ guess

  • Mere existence of uncertainty ≠ guess

  • Just explain your assumptions and procedures

  • “As a rough approximation,…”

  • “Based on the current client most similar to your situation,…”



They’re big boys and big girls, they can handle it

  • They’re big boys and big girls, they can handle it

  • Tell them what you think; let them judge how much weight to give it

  • Would you want the info?



We asked people to score it when a company made an estimate of how much they were losing per year

  • We asked people to score it when a company made an estimate of how much they were losing per year

  • Scored against 3 competitors who didn’t

  • Judged in cases where the scorer did their own estimates or not

  • Estimates were either close, off by 20%, or off by 30%







I’d not be too concerned if their calculation was off by double digits or not. Everything else being equal, I’d gravitate toward buying from this company because they show understanding of my business and support their case for how much value they can deliver. They feel more like a partner I’d like to have because they understand my needs and the benefits their equipment can deliver.

  • I’d not be too concerned if their calculation was off by double digits or not. Everything else being equal, I’d gravitate toward buying from this company because they show understanding of my business and support their case for how much value they can deliver. They feel more like a partner I’d like to have because they understand my needs and the benefits their equipment can deliver.

  • I rated this company high because they put in a lot of extra time and effort into trying to get my business, which says a lot for them as a company.



This company offers a higher service than the other companies. Probably this company offers a better service in the future too

  • This company offers a higher service than the other companies. Probably this company offers a better service in the future too

  • I like that they went the extra mile to calculate the back-up data. It feels like they really want the sale and understand my needs.



I liked that they gave me a personalized outlook for my company. It feels like they really cared about my company and want it to succeed whether I choose to buy from them or not.

  • I liked that they gave me a personalized outlook for my company. It feels like they really cared about my company and want it to succeed whether I choose to buy from them or not.

  • I felt that they went above what they had to do to get the calculations and that they would be a good company.

  • They put the extra effort in and actually looked at my situation. I feel like I am more than just another sale



Overall, regardless if their calculations were correct or not, I would definitely purchase through them because their intent was to help me. With all other factors being the same (price and quality), I would feel better going with the company that made the most effort.

  • Overall, regardless if their calculations were correct or not, I would definitely purchase through them because their intent was to help me. With all other factors being the same (price and quality), I would feel better going with the company that made the most effort.



I gave the company high scores because they took the time to calculate information that specifically applied to me. My ratings were a bit lower when their estimates were lower than mine, but I still appreciated the focus on my personal needs.

  • I gave the company high scores because they took the time to calculate information that specifically applied to me. My ratings were a bit lower when their estimates were lower than mine, but I still appreciated the focus on my personal needs.

  • This company seems to have taken the time to determine a cost-benefit ratio and is adding extra value. Being that the costs of all 4 are similar, I would definitely go with the one that has produced extra value.



(Why are we so quick to assume that our numbers are the wrong ones?)

  • (Why are we so quick to assume that our numbers are the wrong ones?)

  • “it was based on the variables and my own calculations.....if they can see something i don't see, there's more value to that.”



I rated companies higher when their estimations were about the same as mine or lower. When the estimations seemed higher I rated them lower because it felt like they were attempting to pressure me into buying through fear.

  • I rated companies higher when their estimations were about the same as mine or lower. When the estimations seemed higher I rated them lower because it felt like they were attempting to pressure me into buying through fear.

  • I don't like them inflating the wastage to make their results look better



I felt that the company didn't have a real grasp on the industry/my business if they estimated waste levels lower than my actual numbers. If they were within the correct range, then it felt that they understood my business/expenses/expectations. I was neutral if they were higher as it felt like they erred on the side of caution, and I would want to hear more from them.

  • I felt that the company didn't have a real grasp on the industry/my business if they estimated waste levels lower than my actual numbers. If they were within the correct range, then it felt that they understood my business/expenses/expectations. I was neutral if they were higher as it felt like they erred on the side of caution, and I would want to hear more from them.

  • I trusted them as long as there numbers were around the same as mine, anything that seemed relatively low seemed like their calculations could be off.



Because I feel like I can't trust them.

  • Because I feel like I can't trust them.

  • an error is an error, whether under or over estimate.



“I gave all high scores because, even if their calculations were different than mine, I was more impressed that they would make the effort to do calculations [t]o begin with. The accuracy of the calculations wouldn’t matter unless i[t] was something way off.”

  • “I gave all high scores because, even if their calculations were different than mine, I was more impressed that they would make the effort to do calculations [t]o begin with. The accuracy of the calculations wouldn’t matter unless i[t] was something way off.”

  • (Numbers were 30% off for this participant)



“I liked them doing the calculation and trusted it more when it was in line with my own calculation.”

  • “I liked them doing the calculation and trusted it more when it was in line with my own calculation.”

  • (This is what the decision trees show in a nutshell)



I find back-of-the-envelope analysis incredibly valuable because it lets you know if you’re in the ballpark. A lot of the time, all I want to know is whether, say, a new product idea is going to be worth $5 million, $50 million, or $500 million. And some people find it very difficult to get comfortable with that. They think, “Oh, I’m going to say $50 million; what if it’s really $75 million?” I don’t care! “But it’s 50 percent off!” they say. I respond that it’s so much more valuable than not putting together a number at all.

  • I find back-of-the-envelope analysis incredibly valuable because it lets you know if you’re in the ballpark. A lot of the time, all I want to know is whether, say, a new product idea is going to be worth $5 million, $50 million, or $500 million. And some people find it very difficult to get comfortable with that. They think, “Oh, I’m going to say $50 million; what if it’s really $75 million?” I don’t care! “But it’s 50 percent off!” they say. I respond that it’s so much more valuable than not putting together a number at all.



In the end, we put together a pretty comprehensive P&L backed up by solid assumptions. It may have been off by a factor of 2, but who cares? What mattered was that it was accurate enough to make the business decision that was on the table.

  • In the end, we put together a pretty comprehensive P&L backed up by solid assumptions. It may have been off by a factor of 2, but who cares? What mattered was that it was accurate enough to make the business decision that was on the table.



The truth is that business, for the most part, is not an exact discipline like physics or math. … Any number that you can come up with will most likely be wrong. Therefore, you should just try to get an answer that is in the “comfort zone”—directionally correct and of the right order of magnitude.

  • The truth is that business, for the most part, is not an exact discipline like physics or math. … Any number that you can come up with will most likely be wrong. Therefore, you should just try to get an answer that is in the “comfort zone”—directionally correct and of the right order of magnitude.



4-Step Process:

  • 4-Step Process:

  • Establish your baseline

  • Generate your advantage

  • Monetize your advantage

  • Graph it



Decide what value you want to measure

  • Decide what value you want to measure

  • Data can come from

    • the client
    • your detective skills
  • Sant’s Law: If it has value, it can be measured



Technique #1: Find a proxy

  • Technique #1: Find a proxy

  • For manufacturer: “high quality”

  • Proxy?

    • Number of returns
    • Number of repairs


“You will be certain of receiving high quality materials as shown by our repair rate, which is one third the industry average.”

  • “You will be certain of receiving high quality materials as shown by our repair rate, which is one third the industry average.”



Technique #2: Trace the chain

  • Technique #2: Trace the chain

  • For financial services client: “customer satisfaction”

  • Why do they want it? Is that new reason countable?

  • If not, why do they want that? Is that new reason countable? And so on.



Why do they want customer satisfaction?

  • Why do they want customer satisfaction?

  • Happier customers.

  • If “happier customers” isn’t countable, then why do they want happier customers?

  • More return visits.

  • Is more return visits countable? Yes.



Technique #3: How will they know?

  • Technique #3: How will they know?

  • For an engineering client: “excellent training”

  • In one year, how will the end-customer know whether or not they received excellent training?

    • Fewer errors
    • Fewer stoppages
    • Fewer requests for clarification


Own experience

  • Own experience

  • Newspapers, other anecdotes

  • Former clients

  • Industry averages

  • Reasoning and Rule of 5

  • Empirical sources – surveys, ERGO



Three categories:



For outsourcing service client: a brand-new technology

  • For outsourcing service client: a brand-new technology

  • Own experience

    • “When we implemented this, we reduced costs by $400,00”
    • Your lab tests, pilot plants, simulations, etc.


For an IT client: “IT security”

  • For an IT client: “IT security”

  • Newspaper/journal anecdotes

    • “According to Infosecurity Magazine, the total costs of Target’s data breach ‘could end up totaling $1 billion or more in damages before all is said and done.’”
    • Then modify as needed: “Given your size relative to Target, a similar data breach would cost you close to $500 million.”


For an engineering client: “faster construction”

  • For an engineering client: “faster construction”

  • Former clients/case studies

    • “For example, using our proprietary project management processes, we completed construction of a similar hospital four months ahead of schedule.”
    • Then modify as needed: “You will still be three months ahead of schedule even if we only achieve three-fourths of those advantages.”


For an automotive client: “reputation”

  • For an automotive client: “reputation”

  • Industry averages from analysts, trade groups, academia, or any other credible source

    • “According to KPMG, the value of reputation and brand goodwill in the automotive industry is 7.8% of a firm’s value on average. For you, that amounts to $780 million.”


Use the Rule of 5 to create “instant industry averages”

  • Use the Rule of 5 to create “instant industry averages”



Based on fact that 50% of data points are higher than a median; 50% are lower

  • Based on fact that 50% of data points are higher than a median; 50% are lower



Thus, the odds that 5 data points are all higher than a median is 50%x50%x50%x50%x50%=3.1%

  • Thus, the odds that 5 data points are all higher than a median is 50%x50%x50%x50%x50%=3.1%

  • Like flipping heads (or tails) 5 times in a row



For a pharmaceutical client: the value is “getting to market faster”

  • For a pharmaceutical client: the value is “getting to market faster”

  • Find 5 independent data points about what you want to measure

    • E.g., Find 5 estimates of the average sales of a new asthma drug from newspapers, analysts, consultants, magazines, journals, etc.


“Average sales of a new asthma drug ”

  • “Average sales of a new asthma drug ”

  • Independent data points

    • New York Times
    • Reuters
    • Pharma Letter
    • Express Scripts
    • Pharmaceutical Research and Manufacturers of America
    • Credit Suisse, other healthcare industry analysts


“Average cost to build a hotel”

  • “Average cost to build a hotel”

  • Independent data points

    • HVS Design Services
    • RSMeans
    • Hilton
    • Hotel Executive magazine
    • Choice Hotels
    • EV Studio
    • Forbes
    • Rider Levett Bucknall


Odds that the largest of those 5 data points is smaller than the median is like flipping 5 tails – 3.1%

  • Odds that the largest of those 5 data points is smaller than the median is like flipping 5 tails – 3.1%



The distance between the smallest and largest number is a 93% confidence interval.

  • The distance between the smallest and largest number is a 93% confidence interval.

    • E.g., Find estimates of $1.5 B, $1.6 B, $1.9 B, $2.7 B, and $3.1 B
    • There is basically a 93% certainty that the true median sales of a new asthma drug is between $1.5 B and $3.1 B


The mean of the smallest ($1.5 B) and largest ($3.1 B) number is the industry average (± the distance)

    • The mean of the smallest ($1.5 B) and largest ($3.1 B) number is the industry average (± the distance)
    • E.g., You can now say the median yearly sales of a new asthma drug is approximately $2.3 B (± $800 M, 93% CI)


“An analysis of estimates by Credit Suisse and others shows that the median sales of new asthma drugs averages approximately $2.3 B per year. Assuming this, getting to market one month faster delivers about $190 million in additional revenue.”

  • “An analysis of estimates by Credit Suisse and others shows that the median sales of new asthma drugs averages approximately $2.3 B per year. Assuming this, getting to market one month faster delivers about $190 million in additional revenue.”





For an IT client: “faster installation of an ERP”

  • For an IT client: “faster installation of an ERP”

  • Logical reasoning based on realistic estimates from your and your colleagues’ experience, judgment

    • “You generate $48 million in sales per day on average. Even if the disruption from temporarily inaccessible data is worth only $15,000 a day in lost or delayed sales, you earn $210,000 more by completing the installation two weeks faster.”
  • If it matches the client’s beliefs, they accept it



For a facilities management client: “professional appearance”

  • For a facilities management client: “professional appearance”

  • Survey the question you’re interested in

    • “According to survey research, customers who are already considering switching banks would be 80% more likely to switch if their bank looked dirty or unprofessional.”


Proprietary process for identifying

  • Proprietary process for identifying

    • The specific benefits
    • For this specific client
    • And validly estimating their value
  • Backed by over 800 peer-reviewed papers

  • Train your own internal experts

  • 4-step process using three different estimation techniques to generate valid projections



Engineering: the value of choosing us to design your headquarters instead of others

  • Engineering: the value of choosing us to design your headquarters instead of others

  • IT services: the probable ROI to your company from choosing us to install your Enterprise Resource Planning software

  • Telecom: the total value of choosing our highest-security private corporate network



Our client had three general areas where their service was faster than industry averages

  • Our client had three general areas where their service was faster than industry averages

  • A panel was able to estimate the probabilities that they would be faster – and by how much – for this client

  • Backed up by the Rule of 5, they also had a range of probable values for those speed improvements to this client



They were able to demonstrate an Expected Added Value to this client of $576 million

  • They were able to demonstrate an Expected Added Value to this client of $576 million

  • And show the client a probability distribution of the likelihood of achieving various gains

  • My research shows giving probabilities increases client confidence and trust in you

  • (It also protects you since you gave the low end, as well as the expected value)





“According to KPMG, the value of reputation and brand goodwill in the automotive industry is 7.8% of a firm’s value on average. For you, that amounts to $780 million. Surveys show that customers would think approximately 30% higher of a car company that used green manufacturing processes. Even if that only contributes an additional 5% to your reputation, that is worth over $15 million.”

    • “According to KPMG, the value of reputation and brand goodwill in the automotive industry is 7.8% of a firm’s value on average. For you, that amounts to $780 million. Surveys show that customers would think approximately 30% higher of a car company that used green manufacturing processes. Even if that only contributes an additional 5% to your reputation, that is worth over $15 million.”


How much faster/safer/easier/less risky/ etc. are we?

  • How much faster/safer/easier/less risky/ etc. are we?

  • Use internal data

  • If no current data, use some of those same techniques



Remember that the value you state must be:

  • Remember that the value you state must be:

    • Honest
    • Evidence-Based
    • Reasonable
  • Reasonableness includes:

    • Average
    • Common
    • Expected


Over $600,000 in Additional Revenue. With an average length to build a mid-priced hotel of 24 months and average labor costs of $9 million, you save $375,000 in labor costs alone by finishing one month faster. At an average yearly revenue of $2.8 million, you also gain over $235,000 in additional revenue by being open for an extra month. In total, you receive approximately $610,000 in additional revenue because our proprietary supplier networks mean we finish 35 days ahead of schedule on average.”

  • Over $600,000 in Additional Revenue. With an average length to build a mid-priced hotel of 24 months and average labor costs of $9 million, you save $375,000 in labor costs alone by finishing one month faster. At an average yearly revenue of $2.8 million, you also gain over $235,000 in additional revenue by being open for an extra month. In total, you receive approximately $610,000 in additional revenue because our proprietary supplier networks mean we finish 35 days ahead of schedule on average.”













These techniques work so well that one Fortune 500 client went from a 20% win rate to winning 91% of the enterprise-level deals they bid on in the next year

  • These techniques work so well that one Fortune 500 client went from a 20% win rate to winning 91% of the enterprise-level deals they bid on in the next year

  • Their success was so explosive that one of their competitors tracked us down at a conference and threatened us



Tying value to differentiators and evidence to clobber the competition (part 4 of the workshop)

  • Tying value to differentiators and evidence to clobber the competition (part 4 of the workshop)

  • Atom bomb-level templates and techniques to send Legal scurrying for cover (part 9)

  • 5 essential areas of value your proposal must quantify… and 3 more that you should (part 1)

  • Identifying, demonstrating and making memorable the key value your client needs to see (part 3)



  • Don’t miss your chance to make your most important messages 73% more persuasive.

  • If you’re looking for more wins, I look forward to working with you.

  • Sincerely,

  • Chris



We’ll answer any questions you have, learn about you, find a good date, and soon have your win rates rapidly increasing.

  • We’ll answer any questions you have, learn about you, find a good date, and soon have your win rates rapidly increasing.



P.S. If you’re looking for more traditional training, try one of our popular proposal-improvement workshops:

  • P.S. If you’re looking for more traditional training, try one of our popular proposal-improvement workshops:

  • Winning by a NOSE: the Four Best Practices of Proposal Writing

  • Proposal Academy: Truly Advanced Proposal Skills

  • Presentation Power

  • BOLD Ideas, Bigger Deals: Leadership Mastery for Proposal Managers

  • The Differentiator Designer Full-Day Workshop

  • The Value Quantification Super Class – our exclusive, science-backed ERGO technique for creating your own value quantifying panel that delivers customized, correct estimates on demand



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