Below you will find a sample Engagement Letter for short term consulting services. I seldom enter long term agreements, but will consider them on a case-by-case basis. It should be noted that I am not a cultured marble or solid surface technical expert. I can best assist you in marketing and valuation of your business. Although my background is other than working in a cultured marble plant, I have actually made sinks with my own hands! This privilege was extended to me through the generosity of a former client. So now you know my technical experience! If you need help solving business problems, you have come to the right place. Short term fees generally run $250.00 per day plus ordinary expenses. Most jobs are concluded to the client’s satisfaction in 10 days or less.

_________________, 2000

_________________ [name of client]
_________________ [street address]
_________________ [city, state, zip]

Dear _________________:

This is to confirm the arrangements for us to make a general examination of your marketing and sales promotion activities as the first step in developing a comprehensive program for increasing your share of industry volume.

Objective of Study

More specifically, the objective of the first phase will be to review all major phases of your marketing, advertising, and sales promotion activities with a view to uncovering specific opportunities for increased volume and to develop steps for capitalizing on these opportunities. Some of these steps may be developed to the execution stage; others will require further development and refining during the second phase of the sales improvement program.

Scope of Study

Our general diagnostic examination will include the following:

1. Appraisal of your present industry position, including elements of strength, weakness, and opportunities for improvement.

2. Product line--its competitiveness.

3. Markets--territorial strengths, weaknesses, and improvement opportunities.

4. Distribution--effectiveness and cost.

5. Pricing.

6. Sales promotion and advertising--expenditures and their effectiveness.

7. Selling effectiveness--number of salesmen, selection, training, and compensation.

As we proceed with the study, exploration into other related areas will undoubtedly have to be made. The general examination should produce definite conclusions, some final recommendations, and a number of tentative recommendations which would be further explored, refined, and put into effect during the second phase of the sales improvement program.

The conclusions and recommendations developed during the general examination will be presented chiefly in conferences with your executives--possibly supported by visual material. We would not prepare a comprehensive report, although we would be glad to provide written confirmation of the recommendations.

Study Methods

In making the study, we will proceed as follows:

1. Through interviews with your executives in _________________ [location of office] and analysis of data reflecting the past results of sales operations, we will gather facts about your products, markets, and selling and promotion methods.

2. We will gather information about the industry and the competitive situation from external sources, including contacts we have already established in your industry through other studies.

3. We will obtain facts, opinions, and other information from a field study to be conducted in five sales regions--New England, New York, Middle Atlantic, Great Lakes, and Southern. This field study will include work with your regional managers and some of your most effective salesmen in these regions. We will also conduct individual interviews with distributors and retailers.

Thus an important part of the fact-finding during the first phase will be done in the field. We find that the best answers to marketing problems are found through gathering information as close to the customer as is economically feasible. We will obtain information from your advertising agency about your advertising and sales promotional activities. In this connection, we will draw on any consumer studies made by your agency or others. Naturally, we will draw on our experience in making similar studies in your industry and others. This will involve conferences within our offices with marketing consultants who have had this experience but who may not participate directly in your study.

Fees and Expenses

We will make the general examination outlined above for a fee of $_________________.

In addition, you are to reimburse us for traveling and other out-of-pocket expenses. To the extent that it is in your interest to do so, traveling will be from our nearest office. These expenses will not be more than $500.00 without your prior consent.

Personnel and Schedules

This study will be under the direction of _________________, one of our partners specializing in marketing, who will participate in the project. For assistance, other marketing consultants in our other offices will be assigned as they are needed and as their schedules permit.

We will try to start the general examination within the next few days and to complete it within _________________ [e.g., two (2) months] from that time. Either party to this agreement may cancel it by giving three (3) days' prior written notice to the other at the address stated in this letter or at an address chosen subsequent to the execution of this agreement that has been duly communicated to the party giving notice. If you should terminate this agreement at no fault of ours, you shall reimburse us for the travel and out-of-pocket expenses that we have actually incurred and you shall pay us two hundred fifty dollars ( $250.00) per diem that we actually spent working on the services for which you have hired us under this agreement.

We appreciated the opportunity of meeting with so many of your officers. Such a meeting helps to establish a clear understanding of our methods and how we will undertake this assignment. That understanding should, in turn, help to establish the mutual confidence that is essential to the success of any professional undertaking.

We are looking forward to working with you and your associates on this interesting assignment. Please return one signed and dated copy of this letter of agreement indicating your acceptance of our services as stated above if you are satisfied with these terms.

Respectfully submitted,

[typed name]

Accepted for _________________

on this _________________ day of _________________, 2000

_________________ [name of client's firm]

By _________________ [signature of client]

[typed name]