How to write a proposal letter (with examples)

How to write a proposal letter (with examples)

Any company selling goods or providing services needs the loyalty of the existing customers and the attraction of new clients. A proposal letter will help you to do this. In this article, we will talk about how to make a perfect and competent proposal letter that will help the company to stand out among competitors in order to find and retain new customers and business partners.

How to write a proposal letter
Source: UGC

The modern consumer market is oversaturated with goods and services; therefore, a well-formed proposal letter plays an essential role in negotiating lucrative contracts with customers. Managers who know how to use this tool are in the top category.

How do you write a good proposal letter?

A proposal letter is a document with a detailed list of goods and services that a company or organisation deals with. Such a text on cooperation is drawn up within the framework of a specific task, so it is never static. It is not a model document, where signatures and stamps are required, but it is an important message, an advertisement for the target audience.

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At the preliminary development stage, it is necessary to determine what information is required to be reflected, and what to omit. It is important to find out who should address the proposal? And then find out or appreciate the essential characteristics of the chosen addressee or the portrait of the target audience, if mass distribution is planned:

  • Age and gender largely determine the format of the proposal and its size.
  • The level of education will determine the criticality for the perception of complex grammatical structures, and the level of competence in the target area is the attitude of the addressee to specialised terminology, knowledge of the market situation: the level of prices and competition.
  • The status is crucial. If this person is a decision maker in a large company, then the proposal must be completed and delivered in the appropriate "wrapper" in order not only to encourage the addressee to further contacts, but also to overcome all the "defense lines," for example, the personal secretary, expedition, ballot box and spam filter.

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If a proposal letter is addressed to a large corporation, you should familiarise with the procurement regulations of the enterprise, so that the proposal does not form a discord with the accepted processes.

A proposal letter
Source: UGC

You should consider in advance what action a consumer must take when he or she reads your offer. It can request more information, subscribe to the newsletter, purchase, etc. Argument text should not contradict the goal. Ideally, you should also know the preferences and interests of the target audience, and ensure that these interests are consistent with the properties of the product or services offered in a proposal letter.

Proposal letter format

A commercial offer either gives a chance to attract a new client or deprives such a possibility. If you do all the best, you will get an opportunity for business development. With a lousy proposition, you risk failing even if you sell the best product on the market. So, how to write a proposal letter and which format is better to choose? We present you the top-15 steps to success.

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1. Carefully read the request for proposal. Many businesses and government organisations send them to receive goods and services. For example, if a company received a subpoena, it may refer it to specific law firms, inviting them to submit a commercial proposal. The governmental organisation may send such a request with a proposal for the purchase of products or materials. Usually, they contain details that need to be considered before drawing up a commercial offer.

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2. Study customer needs. Your offer must meet current customer requests. Explore the principles of the client and the specific need to write a decent proposal letter that will be useful to the client and help you get the order. It is advisable to contact the representative of the company to find out the answers to the following questions:

  • What were the attempts made to solve the problem? What led to the failure?
  • By what criteria will the quotation be evaluated?
  • What special needs does the company require?
  • Specify the principles of the company. The proposal must take into account them.

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Business proposal
Source: UGC

3. Use the official title page. The first page of your proposal is a title page. It shows the following information:

  • Your name;
  • Your company name;
  • The person for whom the offer is being submitted;
  • Date of the proposal.

4. Indicate the problem that the proposal is intended to solve. The formal proposal should include the formulated problem and contain a solution. Describe the customer's need in simple and understandable language. The client must see that you are guided correctly in this situation.

5. Put your proposal in context. It is necessary to provide additional information and reasons for putting forward such an offer. For example, you can give the following information:

  • Previous unsuccessful attempts to solve the problem;
  • Asking for a commercial offer;
  • Sources that have made you aware of the problem.

6. Formulate definitions of key terms. It is necessary to clearly define the terminology for the specific industry that is used in the proposal. The language should be simple and straightforward, but use technical terms if necessary.

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Business atmosphere
Source: UGC

7. Offer a detailed solution. Outline the problem and report your answer. Be as accurate as possible in the description. Usually, the proposed solution implies the need to use your services or purchase your products.

8. Describe the benefits of your solution. It should be explained why the proposed solution is optimal for the client. You can use a list to highlight key benefits. The advantages most often indicate cost savings, confidentiality and professional qualification of the contractor.

9. Provide a calendar plan. Develop a timetable for completing the tasks that are necessary for the realisation of your proposal. It goes without saying that in the future some details may change; however, a client should have an idea of how you are going to solve the task.

10. Financial estimate. The client needs to know the cost of your services so that the economic forecast may be the most crucial aspect of the proposal letter. Perhaps you will participate in the competition with other companies. Be sure to include prices. Be prudent. For example, calculate the expected money and multiply the amount by 1.5 in the case of unforeseen circumstances. Do not forget to include a loose calculation. You should also include the following information:

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  • Initial costs
  • Labour cost
  • The cost of supplies
  • Current monthly expenses
  • Operating costs
Financial part
Source: UGC

11. Key terms of the contract. If your proposal is intended to be the basis of an agreement between you and the client, then you should discuss the essential treaty provisions.

12. Indicate profile experience. A client must be confident in your ability to realise all the stipulated conditions to choose your offer. Describe one or more similar projects you participated in and share your progress.

13. Identify other project participants. Perhaps your company is not able to meet all the needs of the client on its own. In this case, you need to indicate what kind of assistance you plan to attract. Also, you should explain how do you expect to ensure compliance with other employees.

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14. Specify links. If the proposal letter mentions studies, written reports, data sets and other sources, then references should be added at the end of the document. Use one of the standard formats:

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  • A list of sources will allow a client to verify the information quickly.
  • Encourage the client to ask questions. Enter the address of your website so that a client can find out more information about your company.

15. Work with objections. If you have completed the work on the text, it is vital to walk in the client's shoes and evaluate the received document from his position. Perhaps something may seem controversial or unreliable, or in the course of reading, there will be well-founded objections that demotivate the reader to commit the next step that is expected of him.

Writing a document
Source: UGC

When you make a commercial offer, you must take into account all the details and follow the rules of the correct structure.

Proposal letter sample

Having dealt with the format, we will consider the best proposal letter samples directly:

  • Samples at
  • Good examples at
  • Proposal samples at
  • Check examples at

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In addition to everything written above, do not forget to:

  • See how your client expresses his or her need, what words and phrases he or she uses.
  • Take into account any cultural and emotional aspects that may be an obstacle to understanding.
  • Use short, simple sentences. The document should not be long and full of complicated paragraphs and professional jargon.
  • Include visual effects in the document, such as graphics, to help a client understand your point of view.
  • Edit the text. Check it for grammatical, spelling mistakes, evaluate the structure and content.
Business process
Source: UGC

An indicator of the effectiveness of a proposal letter will be the presence of a response, not a sale. If a client is not interested in cooperation at the moment or is not satisfied with the specific positions of your proposal, this result can be considered positive. You have received information about the client, he or she found out about you, and this can be used in the future.

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Now you have received some tips and advice on how to write a proposal letter, and what should be avoided when writing it. Of course, the creation of a commercial offer is a creative process. Therefore, people with artistic abilities are more likely to succeed in this regard. But in any case, experience and analysis will help you to learn how to make effective business proposals that will significantly increase the pace of your business.

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