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bizwriterjohn
Community Member

Tip of the week: A tactic for bidding fixed fee work.

Topic: bidding on a job that requires a fixed-fee amount -- yet -- the project is sufficiently large (or the write-up is sufficiently vague) the contractor must basically 'guess' at what amount to bid.  I view fixed fee projects of $300 perhaps more, as the grounds for applying this tactic.

This tactic has been commented on more than a dozen times as good business, for validation of the net I use it myself. I do not have data on how many deals I did not proceed on for its use.

For the 1st milestone, I place
$50       1 week                      Placeholder for scope estimation.

Then, I start my application letter with this.

Hello,
To begin, let me note that I have placed in a placeholder amount for the fixed fee amount.  The purpose of this bid is to cover the time necessary to responsibly gather scoping information and return a project bid backed by a sleek delivery plan.

It is probable other contractors will be placing in a fixed-fee bid guess.  Guessing in project work is usually a bad way to start.

.... then I go into my bid letter.

------------------
The reality of how this works out: a hiring client feels comfortable I do not chose to guess -- while other contractors have decided to do this.  In a first or second call, the scope becomes obvious usually and I can adjust the amount to be paid on the back end when I ask for the payment of a milestone.

It is very important to word the entry dialog carefully; this tactic must never be confused with a bait-and-switch pricing strategy.  Instead, a contractor can relate to the circumstances honestly.  Not enough information is available to make a responsible estimate, a response requires a figure, and a placeholder bid was included in recognition of these bottom-line facts.

The tactic has worked successfully for me.

- Boomer, who loves ice cream.

14 REPLIES 14
tlsanders
Community Member


Christine A wrote:

 

Also, I would stay away from mentioning ice cream; the mods don't like that. In fact, don't mention any frozen desserts at all, just to be on the safe side.

 


Surely you don't think anyone could object to that lovely, light lemon-flavored Italian ice? 

tlsanders
Community Member

In this situation, I make an assessment of what the typical workload would be for the project described and provide a price on that basis. Then, in my proposal, I say "Bid price assumes X pages of Y words with Z rounds of revision to be delivered within Q days. If your needs differ, I will be happy to provide an updated quote after learning more about your needs." 

 

This allows me to give the client a realistic bid, still make it clear that I don't have enough detail to lock down a price, and avoid having my proposal ignored because the fixed price offered is far out of range (as a $50 bid would be) or leaving the client feeling tricked when he clicks through to the proposal.


Tiffany S wrote:

In this situation, I make an assessment of what the typical workload would be for the project described and provide a price on that basis. Then, in my proposal, I say "Bid price assumes X pages of Y words with Z rounds of revision to be delivered within Q days. If your needs differ, I will be happy to provide an updated quote after learning more about your needs." 

 


That's almost exactly what I say as well. The tactic has worked successfully for me.

 

I don't think you were around on the day that a dozen or so innocent comments about ice cream were wiped from the forum (including a recipe that I very much wanted to share, which was a valuable contribution to the community). I call it "The Day the Ice Cream Died" (sung to the tune of "American Pie").

 


Christine A wrote:

 

I don't think you were around on the day that a dozen or so innocent comments about ice cream were wiped from the forum (including a recipe that I very much wanted to share, which was a valuable contribution to the community). I call it "The Day the Ice Cream Died" (sung to the tune of "American Pie").

 


I truly hope you have a full set of lyrics to go with that.


Tiffany S wrote:

Christine A wrote:

 

I don't think you were around on the day that a dozen or so innocent comments about ice cream were wiped from the forum (including a recipe that I very much wanted to share, which was a valuable contribution to the community). I call it "The Day the Ice Cream Died" (sung to the tune of "American Pie").

 


I truly hope you have a full set of lyrics to go with that.


Why, why no ice cream with my pie..

I wanted that recipe, too. It had Andes mints in it, if I recall correctly. I can't remember who shared it in the first place.

I totally missed the ice cream recipe, but I was enjoying the ice cream convo and then Threadmageddon happened.

 

eta: so much for "I only post once a year in December and see you next December."

I believe it is too valuable a commodity: experience, expertise, or at least the hope one might contribute such.  I claim neither of the first two, I do have my hopes.  I do the latter.

Boomer - who loves helping.   I just call it ice cream because that is what it is to me.


Phyllis G wrote:

I wanted that recipe, too. It had Andes mints in it, if I recall correctly. I can't remember who shared it in the first place.


It was me, but I don't want to get modded again. You know the old saying, "Mod me once, shame on you. Mod me twice, shame on me."

I support the moderator's decision to wipe the ice cream comments.  They were... fruitless.

I am wagering my parable of Apple Pie will stand.  It is a (a) technique of project delivery that is real-and-used, (b) explained in real-life circumstances of collegial nature, (c) to a fellow services provider with (d) full explanatory of in-stream services impact.

Perhaps this time we can focus on the topic at hand on that one: mindshare harvesting.  It is a techinque useful for all and it happens to work.  I simply recommend however.  All must decide their words for themselves and Valeria has the responsiblity to decide words for all, for her work.

robin_hyman
Community Member

I'm a marketing copywriter and I apply using the client's fixed-price example and include:

 

"Fixed price is a placeholder until I have a better understanding of project scope.  Fixed-price projects include one round of client review/feedback.  If you requre additional rounds, please let me know and I will adjust my price accordingly"

 

My clients rarely have an idea of the # of words so there usually is a bit of back and forth before I can accurately provide a fixed price.  


Robin H wrote:

I'm a marketing copywriter and I apply using the client's fixed-price example and include:

 

"Fixed price is a placeholder until I have a better understanding of project scope.  Fixed-price projects include one round of client review/feedback.  If you requre additional rounds, please let me know and I will adjust my price accordingly"

 

My clients rarely have an idea of the # of words so there usually is a bit of back and forth before I can accurately provide a fixed price.  


Yes, I think that some variation of this or Tiffany's suggestion is much better advice. I can't imagine any of my clients being patient enough to wait a week for an estimate. (Sorry, Boom-Boom.)

I do not recollect waiting for a week to provide a fixed price estimate.  In my experience it takes two call.  (1) listen and take notes (1.a) apply past experiences of scoping estimation, followed next day or day 2, (2) call to discuss scope verbally. 

Then work through it, making sure the dialog is not contractor-vs-client.  As business person-working-with-business person trying to figure out -- a hard thing.  Fair and real scope. They are the same, as best I know.

The core point is to parse out with enought time to build client dialog early one, within close and tight measures of time boundary, within good practices, with full skills engaged.  Or stated otherwise; be the professionals we are.

Boom-Boomer who loves ice-ice cream.

bizwriterjohn
Community Member

Yes, I promised to visit 1x a year.  I have adapted my  mindset.  First, I completed my early tasks of mentorship.  My two mentees have (1) improved their profiles, (2) adapted their cover letters to include various parts of my recommendations. 

 

One has now won major jobs with a bit of confidence provided and we are colleagues of deep regard.  Lest we keep count  - let's - a job invitation came tonight that is miracle-class fit for him.  The direct pass-through recommendation will be made.

One has now completed 3 jobs with 5-0s and amended both profile and project start-up business practices.  I provided the fourth project.  He is now a rising talent.

In 26 days, I have provided what I promised, done what I promised and we are just getting started.

 

Next topic.

I have amended my approach.  I now invest Sunday nights on the blog.  As you can perhaps see, I responded to a dozen posts, with my best efforts at civility but no-nonsense.

My current parable includes Apple Pie.  Which, to note, if you find and read: you will see.  It is a client technique I use during "fast type notes session", is about 20-for-20 in success and can recommend with full authority of 'trying it first'.

Shall we continue.

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