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Sample Sales Proposal ___________________________ (Company) Proposal for ____________________________ (Company) _______________, 2____ ___________________ (name) Account Executive (This summary would begin on the next page) Executive Summary Through conversations with company personnel, and personal observation, we identified some challenges for _________________ Company. Several different information systems operate in the company, each independently of the others. Customers become concerned, and are often lost, when a new salesperson is assigned to a territory. Sales representatives serve as the primary point of contact for customers, but they are often difficult to reach, or are away from needed information. Also, the sales manager has little idea of the activities of the salespeople on a day-to-day basis. _____________________ (Company) is proposing an integrated computer system to manage account information, accounting, and production tracking. This will allow for easy access of information to facilitate efficiency and to answer customer questions. The proposed system includes 8 desktop computers, 2 laptop computers, 14 copies of the software, cabling, installation, training, and technical support. The use of the system will result in greater efficiencies, which will enable __________________ Company to retain more existing customers, increase sales to both existing and new customers, and increase profitability of all sales. Gross margin is projected to increase by 36% ($594,000) the first year after implementation. It will take less than two months for the increased margin to pay off the initial investment in the system. Current Situation ____________________ Company currently has no standardized method for managing accounts. Each salesperson devises his or her own method. There is no integration between the salespeople’s systems, company bookkeeping, and company operations systems. This has created a number of difficulties and inefficiencies for the company. The following is a description of some of these difficulties as determined through our discussions and my observations of your operations. Transitions Although __________________ Company has a good record for retaining sales people, difficulties arise whenever a salesperson needs to be replaced in an area. A substantial amount of vital information about customers exists only in the memory of the departing sales person. Additional information may be on sticky notes, or in various sorts of paper files or computer files. As a consequence, whenever a new salesperson assumes a territory, he or she must redevelop much of this information. Many customers find this disconcerting and some switch to other printers at that time. Customer Service The salesperson is the primary point of contact for the customers within his or her territory. Unfortunately for customers, the salesperson is often away from the office, taking care of the needs of other customers. They can often be reached by pager and cellular phone, but they are away from needed information that exists back at the office, such as the current status of a specific printing job. As a result, it often takes several phone calls and a fair amount of time to get questions answered. Sales Management Sales people tend to have independent personalities. They are appropriately focused on closing sales and satisfying customers. Because of this, it is difficult for sales managers to get them to take time to complete needed sales reports, or to attend meetings. Proposed Solution The answer to many of __________________ (Company)’s account management difficulties is an integrated system for managing accounts, accounting, and production designed and implemented by ___________________ (Company). We propose the following:  1 central desktop computer for the system administrator  1 desktop computer for accounting  1 desktop computer for purchasing  5 desktop computers with hand-held scanner, one each for pre-press (and production manager), stripping, printing, bindery, and shipping  1 laptop computer for the sales manager  1 laptop computer for each of the five salespeople  14 seats of software (account management, accounting, production management)  Cabling and installation  Initial training for 16 people  Ongoing technical support and training The System Administrator will manage the system, serve as an inside salesperson, and act as a liaison between the sales manager, comptroller, and plant manager. When a salesperson obtains a new lead, it is entered into the account management system. Brief notes are made about each contact with the lead. As the lead is qualified, the salesperson indicates (by point and click) which of the criteria for qualification are met. Brief notes can be made about those that are not met. The advantage is that there will be easily accessible records of each lead that was ever considered. The benefit is that there will be a reduction in duplicated effort. Other members of the company can access the information, and no one will need to start from scratch with the qualifying process. Once a sale is made, the order is placed using the salesperson’s laptop and then transmitted to the main computer where it is assigned an order number. The main computer transmits the information to the accounting computer to establish an account. Information is transmitted to the company purchasing agent to start the process of buying stock and ink for the job. The information is also transmitted to the plant manager to facilitate scheduling of presses and operators. When the camera-ready artwork arrives, the order number is attached to it. This number is read by hand-held scanners at each point of production (pre-press, stripping, plate burning, press check, printing, bindery). Notes about the project, especially any concerns or delays, can be entered at each point. The advantage is that the current status of every job is available to anyone. The benefit is that when a customer calls with inquiries about the job, anyone can access the information and quickly answer the customer’s questions. These high service levels will improve the customer’s confidence in ______________________ (Company). When the job is complete, the needed information is received by the shipping department. At the same time, the accounting software generates an invoice. When a new salesperson takes over a territory. All the information about current and past customers, prospects, and leads is available in the account management system. The salespeople will schedule their work on the system. The sales manager will be able to access this information in case a salesperson needs to be located, or a meeting needs to be scheduled. At the end of each month, the sales manager can pull up reports of the activities and results of each of the salespeople and have commissions automatically calculated. Essentially, the system will allow for better customer service, greater efficiency, and better control. Companies who have allowed us to help them implement such systems have enjoyed an average increase in repeat business of 30%. In addition, sales to new customers per salesperson has increased an average of 20%. This means that you can maintain your current level of sales with fewer salespeople, but we propose that you increase your sales considerably with your current sales force. Either way will increase your profitability. Budget One Time Investment Total Hardware  8 Desk top computers @ $2,100 $16,800  5 Hand-held scanners @ $75 375 6 Laptop computers @ $2,400 14,400  Cabling and installation 4,000 Software  14 Seats of combined programs @ $1,800 25,200  Initial Training -- 16 People @ $500 8,000 Total 68,774 Annual Investment Additional Personnel  50% of the time of one individual as system administrator @ $60,000/year 30,000  Ongoing Technical Support and Training -- 12 Seats of combined Programs @ $150/year 1,800 Total 31,800 Annual Benefit Sales in 20__ (last year)  To existing customers 2,500,000  To new customers 1,500,000 Costs in 20___ (last year)  For existing customers 1,375,000  For new customers 975,000 Gross Margin 20___ 1,650,000 (41.3%) Projected sales for 20___  To existing customers 130% x 2,500,000 3,250,000  To new customers 120% x 1,500,000 1,800,000 Projected costs for 20___ (greater efficiencies reduce costs/sale by 3%)  For existing customers 1,690,000  For new customers 1,116,000 Projected Gross Margin for 20__ 2,244,000 (44.4%) Increase in Gross Margin 594,000 (36.0%) Contribution Margin (594,000-31,800) 562,200 Payback Period (68,800/562,2000) 0.122 years = 1.5 months