The Budget Dance
Salesperson: “Do you have a budget defined?”
Client: “Nothing defined yet. Can you give me an idea how much something like this will cost?”
Salesperson: “Hard to say I need to check with our engineers.”
Client: “Well can I get some kind of idea?”
Salesperson: “I really don’t know as there are many variables.”
Client: “Understood, and I won’t hold you to it.”
Salesperson: “We really like to first understand your needs and then price out some options.”
Client: “Okay but are we taking $10,000 or like $100,000?”
Salesperson: “Oh it’s definitely more than $10k but will definitely be less than $100k.”
Client: “So like $50k”
Salesperson: “Maybe. Probably like $45 to $55k, but I’m really not sure.”
Ugggg!!! Painful to write that, and I’m sure painful to read too. But this conversion happens every single day. THE BUDGET DANCE.
Salespeople are too often afraid of the budget convo, when really it’s just one of many key elements to having a genuine and meaningful business conversation. No reason to hold back and the sooner you have some concept of budget the better so you can make sure you aren’t wasting your time - or the clients time on an opportunity.
Every business is different, but there’s an alternate approach - way more simple, shows confidence, gets the client and you on the same page, makes sure you aren’t wasting your time on budgets that are out of whack, and when done well - allows you to price on value.
Salesperson: “There are a few different ways we can approach your goals. As a directional guide on budget this could be anywhere from $35k to $75k. How does that align with what you had in mind?”
Client Scenario 1: “Whoa I had no idea it would be so expensive. Can we do something more in the $10-20k range?”
Now you are aligned and can adjust expectations to simplify the scope of your solution, or if needed tell the client that budget isn’t possible so you can both walk away on the same page. Then if things ever change, you’ll be the first they’ll call as someone who is honest, straight forward, and easy to work with.
Client Scenario 2: “I was thinking more on the low to middle end of that range, but please let me know some options.”
You know you have a truly qualified opportunity and can come back with some options at different price points so the client can decide what’s right for them.
Client Scenario 3: “Yes that’s fine, and if you have ideas that you think can be even more impactful and may cost a bit more, don’t hesitate to provide options.”
Obviously an ideal situation and it’s clear the client has given you permission to present a bigger idea. Without this direction, we would probably hold back out of perceived fear of a limited budget - creating risk that we could actually LOSE the deal because someone else had the guts to go big. Ouch.
Aligning on budget isn’t a big deal. Don’t hold back, don’t be afraid, and don’t get yourself tripped up in the budget dance.