The Challenge: Proposal Overload
In many industrial B2B companies, sales teams work hard – but not always effectively. A typical pattern: hundreds of proposals are created every year, but only a small share results in actual orders.
In one case, a team created 2,846 sales opportunities in a year but closed only 232 deals (8%). Even more striking: over 1,800 full proposals (63%) were written for opportunities that didn’t convert.
This “proposal overload” ties up valuable capacity. Salespeople spend hours chasing deals that weren’t qualified properly. Meanwhile, high-potential opportunities don’t get the time and attention they deserve.
The Fix: Qualify Better, Say No Earlier
The most effective way to reduce cost of sales isn’t to work harder – it’s to work smarter. That means identifying the right opportunities early and exiting weak ones fast.
A proven approach is to introduce clear stage gates between funnel phases. For example:
“Before we submit a full proposal, the customer must give us access to the commercial decision-maker.”
If that commitment is missing, the deal doesn’t move forward. No guessing. No blind quoting. Just focus on real opportunities.
With this discipline, the team in the example reduced proposals from 2,076 to just 386 per year- an 80% drop. The freed-up time was reinvested into high-potential deals, pushing win rates from ~8% to ~10%.
This transformation isn’t theoretical – it’s measurable. The following chart shows how better qualification reshapes the sales funnel across three stages: baseline, first improvement, and target state.
Visual: Funnel transformation through better qualification
By qualifying harder at the top, fewer opportunities reach the proposal stage – but win rates increase significantly, reducing cost of sales and freeing up capacity.
The Insight: Reverse the Funnel Logic
In many organizations, the funnel is upside down:
– High win rates at the top (everyone qualifies)
– Low win rates at the bottom (few proposals convert)
But high-performing teams flip that logic:
– Tough qualification upfront
– High closing rates once a proposal is sent
That’s only possible if each funnel stage is tied to a clear customer commitment. If the deal isn’t moving forward on the customer’s side, it shouldn’t move forward on yours.
Your Next Step: Audit Your Funnel
Take a look at your pipeline:
– How many proposals did your team submit last year?
– How many of them closed?
– What was the win rate per funnel stage?
If your team is writing too many proposals with too little return, the solution isn’t more effort – it’s better qualification.
Say no earlier. Win more later.
