Writing Proposals and Estimates That Close

The Proposal Is Not a Formality

Too many contractors and service business owners treat the proposal like paperwork. They slap some numbers on a page, email it over, and wait. Then they wonder why the prospect went with someone else or just went silent.

Your proposal is one of the most important sales tools you have. It is often the document the prospect shares with their partner, their board, or their spouse before making a decision. If it does not clearly communicate value and make the next step obvious, you are losing deals you should be winning.

The Anatomy of a Winning Proposal

Start With Their Problem, Not Your Company

Nobody cares about your company history on page one. They care about their problem. Open with a brief summary of what you learned during discovery. Restate their situation, their pain points, and what they told you they need.

This does two things. It shows you actually listened, and it frames everything that follows as a solution to their specific problem.

Present the Solution in Plain Language

Describe what you are going to do, how you are going to do it, and what the outcome will be. Avoid jargon. If the prospect cannot explain your solution to someone else after reading this section, you have failed.

Break the work into phases if the project is complex. Give each phase a clear deliverable and timeline. Prospects want to see a plan, not just a price.

The Pricing Section

This is where most proposals fall apart. Here are the rules:

Always provide options. Three tiers work well: Good, Better, Best. The middle option should be the one you actually want them to choose. Research consistently shows that people gravitate toward the middle when presented with three choices.

Anchor high. Put the most expensive option first. Everything after it looks more reasonable by comparison.

Tie pricing to outcomes, not hours. "Website redesign: $8,000" is weaker than "Complete redesign projected to increase lead generation by 30%: $8,000." Same price, completely different perception.

Never send a price without context. If someone asks for "just a ballpark," give them a range and attach it to scope. "$5,000 to $15,000 depending on X, Y, and Z" is better than "$10,000" with no explanation.

Include Social Proof

Add one or two brief case studies or testimonials from similar clients. Not a generic "great to work with" quote, but specific results. "We helped ABC Plumbing increase their monthly revenue by 22% within six months of implementing their new scheduling system."

Make the Next Step Crystal Clear

End with a clear call to action. Not "let me know if you have questions." Instead: "To get started, sign below and we will schedule your kickoff call within 48 hours." Remove friction. Make it easy to say yes.

Common Proposal Mistakes

Sending it and disappearing. Always schedule a time to walk through the proposal together. Proposals that are presented close at a significantly higher rate than proposals that are just emailed.

Over-engineering it. A 30-page proposal for a $5,000 project is overkill. Match the proposal to the deal size. For smaller projects, a well-structured one-page estimate with clear scope and pricing is often more effective than a lengthy document.

Forgetting the timeline. Include when you can start, how long it will take, and when they need to make a decision by. A proposal without urgency sits in inboxes forever.

Pricing without terms. Always include payment terms, what is included, what is excluded, and what happens if the scope changes. This protects both of you and prevents uncomfortable conversations later.

The Estimate vs. The Proposal

An estimate is a price. A proposal is a sales document. Know which one you are sending and when.

For repeat customers or simple projects, an estimate is fine. For new prospects or complex projects, invest the time in a full proposal. The close rate difference is worth the extra effort.

Speed Matters

Research from multiple sales studies shows that responding to a lead within the first hour makes you dramatically more likely to close the deal compared to responding after 24 hours. The same principle applies to proposals. Get them out fast. If you said you would send it Tuesday, send it Monday. Speed signals professionalism and urgency.

Template It

Create a proposal template that covers all the sections above. Fill in the prospect-specific details for each new opportunity, but do not start from scratch every time. Consistency in format builds your brand and saves you hours every month.