Budgeting Pains

You’ve addressed the issues, you’ve successfully identified their problem, and you both see a mutually beneficial fit for business.  You can almost feel the close… then comes the all-important decision of the price tag.  You’re about to enter what could be the most important and tactful part of the sale.  The prospect will be trying their hardest to get the absolute lowest price, and you will be trying to earn the most revenue possible for your company.

You now engage in a battle of wits, and the negotiations begin.  Your object is to get to a number.  An actual, final, agreed upon number.  But before you get there, you’ll have to get to a threshold, and before you get there, you’ll need to establish the general, ballpark, price range.  One way to establish a range is to describe what other clients typically receive in each price bracket.  For example, tell the prospect that those in the $500- $1,000 bracket typically receive X, those in the $1,000- $2,000 bracket typically receive X and Y, and those in the $2,000- $3,000 bracket typically receive X, Y, and Z.  You then ask them if they see themselves fitting into any of these ranges, and ask if so, which one that may be.

Once a general range is established, you should look for where their price threshold is; what the maximum they are willing to pay might be.  This must be done in a skillful and appropriate way, while not appearing as if to pressure them.  It is important to remember, however, that ALL PROSPECTS LIE, ALL THE TIME.  Especially when it comes to money.  They will be trying their hardest to get the best deal for themselves as possible.  Never assume anything.

So, once you get to the discussion of budget, be skillful, be on your guard, but also continue to help them into the price range that best fits their needs.  Overselling them may lead to discontentment in the future.