Differentiate between a solicited proposal and an unsolicited proposal


Proposals may be solicited or unsolicited. Solicited proposals are invited and initiated when a potential customer or client submits exact specifications or needs in a bid request or a request for proposal, commonly referred to as an RFP. Governmental agencies such as the Department of Education solicit proposals and place orders and contracts based on the most desirable proposal. The bid request or RFP describes a problem to be solved and invites respondents to describe their proposed solutions.
An unsolicited proposal is prepared by an individual or firm who sees a problem to be solved and submits a solution. For example, a business consultant is a regular customer of a family-owned retail store. On numerous occasions she has attempted to purchase an item that was out of stock. Recognizing that stock shortages decrease sales and profits, she prepares a proposal to assist the business in designing a computerized perpetual inventory with an automatic reordering system.

For the business to accept the proposal, the consultant must convince the business that the resulting increase in sales and profits will more than offset the cost of the computer system and the consulting fee.

Business

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