One thing that all of us were taught in our first sales lessons is that we must make sure our potential customer has a budget to tackle the purchase of our products or services.
The experiences I have lived throughout my professional career, in positions of salesman or leader of a sales team, have shown me that this axiom is not totally valid. The reality is that if a potential client is putting the budget as an excuse, what he is really saying is that it's not he who makes the final decision.
If you ask about the availability of budget, you risk being facing a person without decision power that responds with the excuse that there is no budget at this time and it freeze your sales process for a while. If you really are in front a person with power to decide, asking the question do you have a budget? can put you at the level of a beginner because you have failed to recognize the power and authority that your interlocutor has in the organization.
A person with power of decision can always find the necessary resources if the proposal you present is convincing. We all know - and your interlocutor too - that investments are needed if you want to improve the results. A Manager who wants to double the production of his factory knows that he is obliged to deploy investments in the equipment of his plants. It does not matter if you are selling a new production line, ERP software, a raw material or a coaching for your employees. The person who is going to consider your proposal and who will make a decision later will basically focus on two things: the ROI, and the impact that will cause in your organization the change derived from implementing the product or solution you propose.
I recommend you not to stop considering the following points when you prepare and present your approach:
- ROI: Every single company have "their" particular process to evaluate the ROI of an investment, there is no standard ROI calculation process. Therefore, knowing the metrics your client uses and how to apply them is fundamental to your business approach. When making a ROI argument, do not use the figures or averages of your potential client's industry. Ask the decision maker about their company's specific metrics and numbers to build their ROI model with those parameters. Nothing can pull you faster on a trade negotiation than a discussion about what number is correct, whether yours or theirs. Use their numbers and keep the debate focused on the value your solution brings to their business. One of the main axes in any ROI calculation is the deadline. Setting realistic expectations associated with deadlines is a very important part of the process. Your customer will always want an immediate improvement, so if there is a timeframe necessary for your solution to generate the results you announce, make sure everyone knows it. I have experienced some situation in which an initiative was stopped in full execution because the management team expected results before than was really possible.
- Change in your customer's business: When your customer implements your product or solution, his organization will be impacted by a change in their current processes. Decision makers will want certain assurances that you -and your company- will be there at that time to lead the implementation process and provide them with advice that will help them become self-sufficient. Remember that everyone in your client has their day to day, so it is important for them to know that you have the right resources available to minimize the impact of the transition. It is also likely that during this time some elements beyond your initial proposal terms appear. Having a good contract change management process will reduce dissatisfaction, costs, stress, or misunderstandings with your client. So do not forget to talk about it in the hiring process.
Siempre hay dinero disponible para utilizar en cosas que tienen sentido. Por tanto, céntrate en, por ejemplo, resolver un problema o en diseñar una solución, cosas que tengan sentido para tu cliente, y que sean valorada positivamente por la persona que toma la decisión de comprar. Asegúrate, eso sí, de que te posicionas ante las personas que pueden decir sí a tu propuesta, y no malgastes el tiempo con aquellos que utilizan el presupuesto como excusa para no comprar.Money is always available to use on things that make sense. Therefore, focus on, for example, solving a problem or designing a solution, things that make sense to your customer, which are valued positively by the decision maker. Be sure, in any case, that you stand before people who can say yes to your proposal, and do not waste time with those who use the budget as an excuse not to buy.
At Heading2Market we are used to dealing with this and many more objections. Do you want to enjoy a free consultation regarding your sales performance?