Why Most ERP Proposals Fail
You send a detailed proposal. Forty pages. Every feature listed. Every phase outlined. Fixed price. Fixed timeline.
The client says yes. The project starts.
Three months later, everything is off track. Scope changed. Timeline slipped. Budget blown.
Nobody is happy.
The problem isn't execution. It's how the deal was structured from the start.
Here are three proposal models that actually work.
Model 1: Discovery First
Most proposals try to price the entire project upfront. Before anyone really knows what they're building.
This is insane.
You can't accurately price something you don't fully understand. And clients can't make good decisions without proper analysis.
How it works:
Phase 1 is always discovery. Fixed price. Fixed scope. Two to four weeks.
You audit the current system. Interview users. Map processes. Document requirements. Identify gaps.
At the end, you deliver a clear plan. What's in scope. What's out. What it will cost. What it will take.
Then the client decides whether to proceed with phase 2.
Why it works:
The client pays a small amount to get clarity. You get paid to understand the real problem. Everyone makes decisions based on facts, not guesses.
If the numbers don't work after discovery, you part ways. No hard feelings. No wasted months.
When to use it:
Complex projects where scope is unclear.
Clients who think they know what they need but probably don't.
Projects with lots of custom requirements.
Migrations where you need to see the old system first.
Model 2: Fixed Core, Flex Extensions
Some parts of every ERP project are predictable. Others aren't.
Don't pretend everything is fixed when it's not.
How it works:
Core modules are fixed price. Finance. Sales. Purchasing. Stock. These are standard. You know exactly what they take.
Everything else is time and materials with a cap. Custom integrations. Special reports. Unique workflows.
You estimate the extensions. But you charge actual time spent, up to a maximum.
Why it works:
The client knows the base system cost. They have budget certainty for core functions.
You have flexibility for the unpredictable parts. No fighting about scope changes.
If extensions come in under estimate, the client pays less. If they go over, you hit the cap and renegotiate.
When to use it:
Standard deployments with some custom needs.
Clients who want cost certainty but need flexibility.
Projects where 80% is predictable and 20% isn't.
Model 3: Phased Value
Most ERP proposals try to do everything at once. All modules. All locations. All users.
This maximizes risk for everyone.
How it works:
Break the project into value-based phases. Each phase goes live independently.
Phase 1: Core financials for one entity. Price: Fixed. Timeline: 2-3 months.
Phase 2: Add operations modules. Price: Fixed. Timeline: 2-3 months.
Phase 3: Roll out to other entities. Price: Per entity. Timeline: 1-2 months each.
The client can stop after any phase. The system is always working. Value is delivered incrementally.
Why it works:
Lower risk. Smaller commitments. Faster time to value.
The client sees results before making the next investment.
You build trust through delivery, not promises.
If phase 1 goes well, phases 2 and 3 are easy to sell.
When to use it:
Multi-entity deployments.
Clients who are risk-averse or budget-constrained.
First-time ERP buyers who need proof it works.
Projects where you want to de-risk and build momentum.
What All Three Models Have In Common
They all avoid the big mistake most consultants make: pretending they know everything upfront.
They all prioritize clarity. The client knows what they're paying for. You know what you're delivering.
They all manage risk. Small commitments. Clear deliverables. Decision points built in.
They all build trust. You're not trying to lock the client into a huge contract. You're earning the right to do more work.
How To Choose The Right Model
Use Discovery First when scope is unclear and the client needs education.
Use Fixed Core, Flex Extensions when most requirements are standard with some unknowns.
Use Phased Value when the client is risk-averse or has multiple entities.
Sometimes you combine them. Discovery phase first. Then phased value for implementation. Core modules fixed, extensions flex.
The point is to match the proposal structure to the actual project reality.
What This Means For You
If your ERP projects keep going off the rails, look at how you're structuring the deals.
Fixed price for unclear scope is a recipe for failure.
Big bang proposals maximize risk.
Pretending you know everything upfront destroys trust when reality hits.
Use proposal models that acknowledge uncertainty, manage risk, and deliver value incrementally.
This is how you build projects that work. And relationships that last.
