Jill Konrath

 

Jill's Jottings: Fresh Sales Strategies 


Get More Free Sales Resources

Current Articles | RSS Feed RSS Feed

[Video] Sales Objection: Dealing With the Budget

  
  
  

How often have you been told, "It's not in the budget"? That's probably one of the most common sales objections that people give you. And, it's really totally irrelevant to their actual situation. First off, if you get that objection -- it's because what you said is too darn focused on your own product or service. You sound like a self-serving salesperson and they just want to get rid of you.

So don't talk about your stuff. Talk about your value proposition. Then, if you still get that sales objection, here's what I want you to say. "Of course it's not in your budget. We haven't had a chance yet to determine the value it could bring to your organization. As I mentioned we help our clients -- and now you restate your value proposition -- we help our clients reduce time to revenue on new product introductions.

Then, follow that by sharing a recent success story. You might say. "For example, we were recently working with Big Deal firm and after six months they were able to realize these specific results.

After you share the results, then you can say. "What we usually find is that people put money in the budget when it makes sense financially. So let's get together and see if it does."Sales Objections

Question: How do you overcome the budget sales objection? Enter your comments.





Jill KonrathJill Konrath is an internationally recognized sales strategist. As author of two bestselling books, SNAP Selling and Selling to Big Companies, she's a frequent speaker at sales meetings and conferences. For more fresh ideas, download her free Prospecting Toolkit.


Comments

After establishing their pain (what their greatest challenge is), I will talk about how I have helped other companies with similar problems. Next I will ask if they have set aside resources to fix their problem. If they say that the there is not a budget available for additional external expenditures, I will ask what have they done in the past to find critical resources to solve a problem. Usually, they have always found the dollars necessary when they absolutely needed to find funding.
Posted @ Tuesday, August 28, 2012 6:26 AM by John Walser
Jill - If CFO's had their way nothing would be 'in the budget'. The first thing I do is make sure that what I am selling is at least within a feasible number for the prospective customer. One Fortune 100 prospect was looking at a project with a 'ballpark' cost of 4 million dollars. They wanted to get by much cheaper. I, and three of my very good competitors, were all in the same range. We all pushed the value proposition, ROI, and creative ways to finance the project. They never did anything. I was actually able to compare notes with my competitors, and we likened it to a patient who, after received an unwanted medical diagnosis, kept going to additional doctors hoping to hear a more favorable one. Sometimes it is what it is, and finding that out early is your best course of action. 
 
When a customer truly sees the value, it is easy to work with them to find the money. Do a beta test, proof of concept. An order for 3 expensive scanners, with the caveat, "We can't afford to replace them all. We'll replace the others as they wear out'. Became, "Wow, these are so much better, we'll take the money from something else". 
 
One customer would routinely lease equipment while getting corporate capital budget money approval. Once approved, they would simply buy out the lease early. On some capital expenditures, customers were able to shift a capital purchase to the expense side of their budgets, by signing contracts for consumables that were large enough to cover the cost of the equipment. 
 
As you've said, if you've shown the business case, there are ways to find the money.
Posted @ Tuesday, August 28, 2012 7:42 AM by Barcodeguy
An executive can find budget if they really want something. In my world, not in the budget is code for: "I don't see a need to buy your service" or "I don't have enough pain to spend money on this right now". If you've run your full cycle and find this out at the altar when you think you have a deal you've missed a step along the way.
Posted @ Saturday, December 08, 2012 9:55 AM by Ray Carroll
Great points by Jill. As usual common sense solutions to everyday sales challenges!
Posted @ Friday, January 04, 2013 8:53 AM by Doug Schmidt
Companies exist to make a profit. If you can clearly define how your offer makes that easier (even if it takes a few steps), there will always be room in the budget to make more money.
Posted @ Saturday, May 18, 2013 9:54 PM by Gabreil Kane
When there is a will there is a way.  
 
Ask people how they have done something in the past when they have been in this position or who has the ability to get money. You can also ask when budget might be available if nothing else works.
Posted @ Friday, June 28, 2013 9:19 AM by Jonathan London
Two points to this experience: 
 
1. Questions "gather" information and objections "disclose" information. Here the objection "it's not in the budget" would indicate either value had not been established or need had not been expressed by the prospect. 
 
2. There are only four basic objections: 
 
1. No money 
2. No need 
3. No hurry 
4. No confidence, in you or the product or the company 
 
Since we already know what the four basic objections are would it make sense to build these into the qualification and presentation so they don't come up at the close? If "not in the budget" comes up when our done you weren't done.
Posted @ Tuesday, February 18, 2014 9:11 AM by LLoyd Lofton
Post Comment
Name
 *
Email
 *
Website (optional)
Comment
 *

Allowed tags: <a> link, <b> bold, <i> italics