Should I Itemize My Proposals? What Happens If I Don't?

Pros and Cons of Not Itemizing Proposals

Pros:

• Keeps the focus where it should be – on the outcome/benefit of the job
• Doesn’t overwhelm the customer with details they have no expertise in. You are the expert, that’s why they called you
• Simplifies and shortens the proposal approval process
• No justification of your items and costs needed.

Using my analogy again – the customer called you and wanted to build their dream outdoor living space! Now, I have a question for you: are you selling a parts list and widgets? Or are you selling a lifestyle?

Lets imagine the customer mentioned a sibling was moving back into the area and they want a space where their kids can spend time together. Don’t overwhelm them with technical details that only make sense to you – the expert. Sell them what they asked for! 

In the line item description, talk about how the well thought out design is going to help them maximize the function of their limited space. Because of this they’ll get more bang for their buck out of the space. They have young kids, and kids love smores, so you incorporated a fireplace. They mentioned they love the sound of water, so you designed the space with a rippling brook. Plus they want their kids to unplug, and nothing draws kids outdoors like playing in water. 

Sure, include details like how large the patio will be, and that the color of the pavers was chosen to compliment the color scheme of their home. But don’t trigger needless questions by including technical details and parts lists. Your competency is much better backed by a solid guarantee, your online reviews, your referrals, and your beautiful portfolio of past work.

And one side note on the labor rate. It’s a funny thing, but I’ve seen it multiple times, so I can’t ignore it. If you show your customer that your hourly rate is $95/hr, it raises eyebrows and some will object and question. I even had one customer that straight up didn’t  do the job because of the $ amount per hour. Prior to that moment, he had seen the total price of the job, and had no objection and we were talking about scheduling the job. Then when he saw the labor rate I had written on the proposal, he switched from being ok with the price to totally not ok with the price. 

It’s as if they see the total job price is $20k, it’s like “Oh, ok, that’s something I can swing. Then when they see the price per hour, they have a preconceived idea on what they think labor should be worth, and balk. Weird. 

Cons:

• Customer can’t see where the costs are, so if they need to cut budget, they need to ask you how to do that (is that even a con?) instead of looking for the largest $ ticket items in the breakdown and questioning whether you really need that or asking what they could remove.
• For some customers that have a technical/engineering style personality, they may feel the need to see the technical details and can’t. 
• Maybe I have confirmation bias, but I’m drying up. I can’t think of any more. 

Thinking about this as I write this, I’m reminded again how much your view of the different methods would change based on your own personality as a salesperson. For myself, I would WANT my customer to ask ME how and where they can cut budget. As opposed to scrutinizing my detailed itemized proposal. They are trusting me as the expert. It’s my duty to perform as the expert and help them find the solution that fits their budget. And not unnecessarily overwhelm them with white noise and details they have no way of knowing what it means. 

But I also have friends that feel the opposite way. They feel that by showing the customer the completely itemized list, they are being transparent, and can use it as reinforcement to justify why the price is what it is. “I can’t remove that expensive item, I need it for so and so to do the job properly…” and so on. 

But the way my mind processes that is I’m inviting the customer to debate me on the items within the quote, as opposed to me guiding them on what choices they could make to get the budget where they want it. 

I should clarify, when I speak of itemizing, I am referring to quotes that literally have every single bolt, screw, and item displayed for the customer. I don’t mean taking a large project and only providing a description of the entire project and one price. I would take the entire project, show it in separate line items, broken out by how I want the customer to choose between the options. This allows me to offer good, better, best options, or even optional addons, all as separate line items. But within each of those line items, I’d have a description highlighting the what the finished product will look like, any guarantees we provide, and the benefit/outcome I believe the customer is looking for. 

For example:

Full Outdoor Living Space Project:

Line item 1: 20×25 Patio (w/ description and price)

Line item 2: Seating wall and firepit (w/ description and price)

Line item 3: Optional Landscape Lighting addon (w/ description and price)

Line Item 4: Water Fountain (w/ description and price)

and so on. 

This will easily and plainly communicate the choices the customer could make that would have an impact on the budget. And is keeping the focus on the final outcome, instead of the parts list and labor inside each of those line items that I worked up to find the price. 

To summarize…

It really does come down to personal style. Some people can navigate the conversation around justifying their parts list and labor price better than I can, and don’t mind the cons I listed at all. They actually feel it helps them earn trust. Others are more like me, and want to avoid that technical and detail oriented conversation, and find it easier to perform the art of the sale while discussing the various line item options with the client. 

Help me learn some new ways to spin this subject. What do you find works best for you? Anything you have to add or contradict? Let me know in the comments!