Estimating The Cost; Presenting The Final Proposal And Creating Expectations - Cisco RJ-45-to-AUX Brochure

(briefly, this term refers to the fact that buying equipment correctly up front will be significantly cheaper than
upgrading individual components later when it becomes necessary). Customers may not want to invest more
money than they have to in the short term, but sometimes they will—and you wind up making a much bigger
sale. Occasionally, your customers will find wisdom in investing in the future.

Estimating the Cost

When estimating the cost of a proposal, I add all the equipment costs and then add an additional 10 percent to
the total, just in case I forgot something such as cables, tape, or tools. (I always have to go to the store for
something I had no way of knowing I'd need.)
Make sure you factor in small things, such as tape, cables, cable straps, bundle holders, connectors, cable
converters, extra RAM, cable testers, and the like. Don't forget to include parking costs—especially in San
Francisco at $17 to $30 per day.
Tip If you are really trying to bid competitively, you may want to make the equipment costs appear lower and
increase the labor cost by just a few dollars or increase the labor time estimate.

Presenting the Final Proposal and Creating Expectations

The process of creating a proposal may seem difficult; but once you make a successful proposal, you can use
the same one over and over, with modifications. The final proposal should break down the costs of the
equipment, software, your labor, and licensing (software and hardware), and it should include network
diagrams if possible. The proposal should look professional, including diagrams created using software such
as Visio, to show how the equipment will be placed, and spreadsheets listing the equipment costs and the
amount of realistic labor for installing each item.
At the very least, the proposal cover should be full color. A picture of the customer's building is great to
include. I once had a manager who had a sign that read, "THE PROPOSAL: Dumb people like pictures." Of
course, you don't want to call your customers dumb—but they lack your knowledge. If they didn't, you
wouldn't be there.
Don't get too in−depth, such as estimating the number of feet of cable needed for each room. That's a little
too much. Just include a single "cabling" item on the proposal.
However, you should go into great detail as to the steps you will take to complete the job. Be sure that these
steps are outlined in a language that the customer can understand. Assume that the customer does not know
such terms as CPU, RAM, and CSU/DSU. Explain what each device does and why it is needed. A proposal
that the customer can't understand won't help you get the job. I have seen some proposals that included a list
of acronyms or a glossary.
Along with the proposal the customer is expecting, I include a higher−end proposal outlining what the
customer could purchase for future needs, as well as a separate proposal to help negotiate the cost of
continued support after the installation. Someone has to support the equipment after it is installed—might as
well be you or someone who works with you.
Warning
The last thing you should do is place an expiration date on the proposal. Equipment costs change, and so do
your time constraints. Usually I make mine good for 90 days. This limit gives the customer plenty of time
review the proposal and come to a decision.
Unless the customer asks, avoid contracts and proposals that keep the total amount
open. A contract or proposal that states you'll work for $75 per hour until the job is
done will most likely be unfavorable—unless you're contracting with the government,
and then I highly recommend it (that was a joke). Customers want to know the final
total up front.
349