No matter how sweet a product or service can be that would benefit a prospect, the budget is ultimately what they are worried about the most. Prospects often have a number in mind on how much they are willing to spend and we as salespeople have ways to figure out how to draw that number out without just asking “How much are you willing to spend?” A extremely helpful tactic that salespeople can use to find that number is bracketing. Bracketing involves letting the customer decide how many and what needs they want satisfied in a specific price range. depending what is being offered, salespeople can offer 3 “solutions”. The first solution for the customer spending would be spending $500 – $1,000 to satisfy X needs. The second solution being the customer spends $2,500 – $5,000 to satisfy X and Y needs. And the third solution being being the customer spends $5,000 – $10,000 to satisfy X, Y, and Z needs. I used a tweaked version of this process when selling Cutco. The trick was asking the prospect questions about their cooking behaviors like “How often do you cook at home?/How many people do you cook for on average?/Do you work with a variety of foods or do you have a go too specialty you find yourself cooking all the time?/Do you often host dinner parties or large get togethers?” and so on in order to find out the best possible option for them. Cutco has a wide variety of cutlery sets varying in size and price. If the prospect informed me they rarely cook and when they did it was often something small and easy, then I would show them the smaller and cheaper sets with little knife variety because those sets would best satisfy their needs. If a customer explained how they cook all the time for tons or people with plenty of varying ingredients and how they were looking for knives build for specific foods, then I would show them the larger and more expensive sets with specifically designed knives because that is what best satisfied their needs. Budget essentially revolves around the customer receiving, for lack of better terms, the best bang-for-buck product for them that will best suit their needs.
BoweryJE22
You make a valid point about the significance of budget in the sales process. Understanding a prospect’s budgetary constraints is crucial to offering them the most suitable solution. The bracketing technique you mentioned is an effective way to help customers determine their preferred spending range. By presenting different options with varying prices and features, you allow prospects to assess their needs and make an informed decision. Your experience selling Cutco knives demonstrates the practical application of this technique. Through thoughtful questioning, you were able to identify the customer’s cooking habits and preferences, enabling you to recommend the set that best aligned with their needs and budget. This approach not only helps customers feel more involved in the decision-making process, but it also ensures they receive the best value for their investment. By tailoring the solution to their specific requirements, you’re providing them with a product that meets their expectations and delivers on their needs. Considering budget as a factor of value for customers is key. It’s about finding the right balance between affordability and meeting their desired outcomes. By utilizing bracketing and understanding customer needs, salespeople can effectively navigate the budget conversation and offer appropriate solutions.