The proposal is the first official document of the sales process. The customer makes a decision by reading it; therefore, its presentation is as important as its content.
Despite this, in many businesses, proposals are prepared individually in Word files. The result: every salesperson has a different template, untrackable revisions, and forgotten proposals.
In this article, we explained the proposal structure, validity period, revision management, and conversion to order.
Table of Contents
What should be included in a proposal?
A good proposal contains all the information the customer needs to make a decision and nothing more.
Items and quantities. Product or service descriptions must be clear. Just writing a stock code makes it difficult for the customer.
Unit price and total. If there is a discount, it should be shown separately. A hidden discount creates trust issues in subsequent negotiations.
Taxes. It must be clearly stated whether VAT is included or excluded. This ambiguity is the most common proposal dispute.
Delivery and payment terms. Delivery time, delivery location, and maturity information are part of the proposal.
Validity date. We discussed this further below; it is the most skipped field of a proposal.
Why is a validity period mandatory?
A proposal without a validity period is an indefinite commitment. A customer coming back six months later may demand the old price.
In periods when costs are volatile, this is a serious risk. In imported products, exchange rate fluctuations alone can wipe out the margin.
The duration should be determined according to the supply structure of the product. It is kept longer for standard products sold from stock and shorter for project-specific production.
Sending a reminder before the period expires also increases conversion; notifications automate this tracking.
How should the price be determined?
Calculating the proposal price manually every time is both slow and risky. A price that varies depending on the salesperson creates problems when comparisons are made between customers.
The correct approach is for the price to come from customer- and quantity-based definitions. The salesperson does not type the price; the system brings it and modifies it within authorization limits if necessary.
We explained this structure in the discount matrix and price list and customer-based pricing articles.
The discount authority should also be limited. Discounts above a certain rate must be subject to approval; authorization ensures this control.
Revision tracking
Most proposals are not accepted in their initial version. The customer removes items, changes quantities, or requests discounts.
Each revision needs to be saved as a separate version. This is the only way to answer the question, "Which proposal are we discussing?"
Revision history is also a negotiation record. Knowing at what point and how much concession was made serves as a reference in future negotiations.
Gathering all discussions with the customer on the same card completes this picture; customer 360 view you can check out the article.
Proposal tracking and conversion rate
A proposal that is sent and forgotten is a lost sale. Tracking discipline directly impacts the conversion rate.
The pending proposals list must be reviewed regularly. Aging proposals are either followed up on or closed out.
Lost proposals must also be recorded. The reasons for losing — price, lead time, scope — build a valuable dataset over time.
When proposals are tracked together with opportunity management, sales forecasting becomes realistic; opportunity pipeline management we discussed it in the article.
Converting to an order
When a proposal is accepted, the order must be created as a continuation of the proposal. Lines are carried over; no data is re-entered.
This connection subsequently answers the question, "What did we discuss in the proposal?" When a price discrepancy arises, comparison can be made with a single click.
What follows the order continues with the document chain; we explained the workflow in the sales document chain article.
Proposals and orders are kept in the sales module; field teams can create proposals from mobile devices.
Presentation of the proposal
How the proposal looks is just as influential on the decision as its content. When a customer chooses among three proposals, they take the easy-to-read one more seriously.
This is why using a standard template is important. In a structure where each salesperson prepares their own file, the corporate image falls apart and information gaps occur.
The logo, contact information, and validity date must be in fixed positions on the template. Product descriptions should be clear; a customer will not understand what they are buying from a stock code.
Delivery time and payment terms must be in a visible place. When this information is missing, the customer gets back to you and the process is extended by another round.
We covered the document design approach in the document design article; the same discipline applies to proposal outputs.
Analyzing lost proposals
Won proposals are celebrated, lost ones are forgotten. Yet, the knowledge to be learned is mostly in the lost ones.
A loss reason must be entered for every closed proposal: price, lead time, scope, competitor preference, or customer cancellation. If this field is not made mandatory, it is never filled out.
When looking at the distribution at the end of the period, the picture becomes clear. If most losses are due to price, the price list should be reviewed; if they are due to lead time, the problem lies not in sales but in operations.
The conversion rate must also be monitored: what percentage of sent proposals turned into orders? This rate varies by representative and customer segment, enabling realistic target setting.
The data required for analysis is extracted from opportunity records; opportunity pipeline management article, we explained this structure.
Frequently asked questions
Does a quote reserve stock?
Generally no. Reservation starts with the order; otherwise, quotes would block stock.
Can the quote design be customized?
Yes, templates matching the corporate identity can be used. We explained the document design logic in the document design article.
Can quotes be given in foreign currency?
Yes; to manage exchange rate risk, keeping the validity period short is recommended.
Can quotes also be given to dealers?
List prices generally apply in the dealer channel; see the B2B account groups article.
The quote is the first document by which the customer evaluates you. A standard structure, defined pricing, and regular follow-up; these three visibly increase the conversion rate.
Let us leave a short checklist. Do your quotes have an expiration date? Do prices come from definitions or are they typed manually? Are pending quotes reviewed regularly?
If any of these three items is missing, it means there is an easily winnable area in your conversion rate. The fastest improvement usually comes from follow-up discipline; quotes that are sent and forgotten are more common in many businesses than thought.
It is also useful to review the quote template once a year. Changing bank information, outdated contact addresses, and old logos are small but noticeable details.
By talking with the EQLEM team, you can set up your quote processes and price definitions.