“I don’t have a budget for this, that’s why you’re here…”
If you have asked for budgets before then you have probably heard this line from a prospect. Most salespeople tell me that asking for budgets simply doesn’t work, but my response is always the same…
It’s because you’re doing it wrong.
Now this may sound mean or condescending, but it’s true. Asking for a budget works, it just requires the proper approach.
If you aren’t getting budgets from prospects, then you should start. And, if you are trying to get budgets and not getting them, then you should change your approach.
There is a very simple approach to asking for a budget that will work almost all of the time.
In this video, I’m going to show you how any salesperson can handle the objection “I don’t have a budget.” Check it out:
1. Establish the cost of their challenges first. Then ask for a budget.
So, what do I mean by this? You must really establish a budget through questions and conversation. Find out how much it’s costing your prospects right now to not actually solve those challenges. Once you’ve had that conversation, then it’s time to ask: “Do you have a budget for this project?” It’s a very simple question, but your prospect is pretty likely to say “no” when you ask. Just be ready—and don’t freak out.
2. Roll with it—and explain.
If your prospect says there’s no budget, stay really calm and act like it’s no big deal. Just say, “Totally makes sense. The reason I ask is because I want to avoid us having to go back and forth after I’ve put together a proposal.”
3. Hang in there.
Just because prospects say they don’t have a budget, that doesn’t mean it’s over. Just get right back on the horse, and hang in there. Respond with something that sounds like this: “In order to solve the problem that you say is costing you around $1 million, what could you see investing in this project?” If you have a strong connection and trust, prospects will hang in there with you. But, let’s just imagine at this point that there’s still nothing. The prospect says, “You know what? I just don’t know.” Now, it’s time to pull out the range.
4. Give a range.
Now, giving a range isn’t the best place to start—but if you just keep on hitting a wall, it’s time for the range. The range sounds something like this, “George, in order to accomplish what we discussed, I can tell you that we’re going to be somewhere between $100,000 and $400,000. Where in that range could you see yourself investing?” Now, notice how wide that range was. I’m not really giving the prospect that much information; I’m just letting him feel like I threw out some numbers. What’s amazing is that once you throw out some numbers—even that wide range—prospects are very likely to share with you a specific number. It’s really incredible. Suddenly, they have a specific budget.
5. Don’t leave until you’ve established a budget.
You have a right as a salesperson to get on the same page with money before you put together a proposal. Don’t let anyone tell you otherwise. Nothing will save you more pain and heartache than clarifying that budget. The key is to be totally committed to agreeing on a budget before you go to the proposal stage.
So there you have it. Now you know how any salesperson can handle the objection “I don’t have a budget.” I want to hear from you. Have you ever tried to get a budget from a prospect? If so, what was the result? Be sure to share below in the comments section. I’ll respond to every comment I possibly can.