When should you (actually) offer three options?

_{[Read time: 2.5 minutes]}

I got a great question after last week’s newsletter:

The short answer:

Offer three options only once the problem is clear, but before the proposal is written.

(and when I say “offer,” I mean: at minimum allude to varying options. At outline what they look like)

But of course, there is nuance. So here’s the full story of how I approach proposals (in sequence).

First, some context:

What I’m sharing here applies primarily to strategic, tailored services (e.g., consulting, coaching, development, strategic advisory, design).

The kind of work where outcomes vary, situations are unique, and the problem often needs some defining before it can be solved (even if your process is standardized or repeatable).

Yes, the three-option rule applies to productized-services and even physical products too (just in a different way). This post is about high-trust, conversation-led work.

1 — Problems before proposals.

In my early days, I would jump into proposals way too early.

I’d package up what I thought the client needed, based on limited discovery, and send it off like it was homework.

I treated the proposal more like a pitch deck.

Now I treat it more like a strategic, digestible summary of what’s been discussed in discovery.

Something I can only craft after mutual clarity is earned.

And when I say “problem” I mean some alignment on some variation of current state, future state, pains, obstacle(s).

Key word: alignment. Because often, I’ll see the problem differently than they do.

Again, this means I don’t write proposals them until we’ve both earned the clarity to do so.

And oftentimes, I ask for explicit permission to craft the proposal.

This usually happens after two discovery calls where we’ve mapped out my 6-elements:

• situation

• desired outcomes

• success metrics

• risks

• value

• nuances or sensitivities

2 — If the problem is still too fuzzy (or the business has many, many, many moving parts), I run a paid audit instead of jumping into a 3-option proposal.

Ambiguity helps no one.

In these cases where neither of us are super clear, I recommend starting with a paid audit (i.e., total business diagnostic).

It does two things:

1. Helps the client gain clarity (often more than just the problem, but the business itself)

2. Gives me the inputs I need scope the right solution

It’s a small, stand-alone engagement with a tangible output.

Findings → insights → recommendations → then a proposal (in the form of a strategy doc).

It also signals we’re taking things seriously.

Plus it also lets the client:

• See how I work (before a larger investment)

• How we collaborate together

• Get objective insight they can’t access themselves (because “it’s hard to read the label from inside the jar.”…ah, yes, my favorite metaphor)

3 — Introduce the shape of the options in conversation before writing them down.

Once the problem is clear, I introduce the idea of three options (verbally).

The purpose of the options is to create decision autonomy, while anchoring the decision in real trade-offs based on what they value most.

For example, that might be:

• Pace: 10-day, 30-day, 90-day engagement

• Delivery model: advisory only, advisory + bandwidth, fully integrated

• Outcome: Grow margin by 15%, hire 2 staff, hit $2M in sales.

The key is:

• All three must be real.

• All three must be valuable.

• All three must be deliverable.

Since the middle option is usually the ideal fit (and safest for most people), I’d suggest it be properly priced (for you) and high-value (for them).

And if a budget was shared in this process, I make sure one of the options meets that budget number.

4 — The proposal distills. The contract formalizes (the details).

I don’t think anyone is a big fan of surprises in buying process.

The only surprise in the proposal should be that it’s easier and clearer than expected (or maybe lower in price).

My point is I’ve moved away from revealing information in the proposal.

They are not super long. Nor are they dense.

I design the proposal to facilitate the closing discussions and their decision.

I keep them short. Two pages max. (Thanks, Blair Enns)

They include:

• the six elements from the discovery conversations: situation, desired outcomes, success metrics, risks, value, nuances or sensitivities

• three clear options

• prices, timelines, and next step.

Once we agree on direction, only then comes the contract with adds formality, terms, and the details.

The contract isn’t designed to negotiate if we are working together, it’s finalizing how we are working together.

Do proposals stall? Yes.

Do contracts fall apart? Yup.

But this structure has increased my odds of closing, charging more, and delivering real value.

See you next week.

— Peter

P.S. RFPs are a different beast. They lock down the structure and timing in ways that make this approach difficult (or impossible). What I’ve shared here applies to non-RFP, consultative sales processes where you control over buyer journey. That said, if RFPs are a part of your world, the real move is to become the ‘thought-of option’ before the RFP is released. Difference fame. Reach out if this applies to you.

P.P.S. If you’ve got a specific situation where you’re stuck on how or when to present options, reply to this email — or find time to chat. I’ll give you direct input.