In selling, talking with a potential customer about the budget can be a difficult task. As a sales person, it is a true assessment of the real pain of the prospect and the prospects perception that your solution can solve that pain and is worth the cost. So how do we have this conversation with a potential client? In class these were some things to think about in bullet points that we touched on:
- Honesty and Delicacy are a must
- How easily does your prospect talk about money
- Are they uncomfortable
- Do they suddenly act in a controlling way
- Does it get weird
- If so why do you think that is?
When I had this conversation with clients, It really depended on how much I needed the job. If I didn’t need the job I might throw a higher number out to see if the customer will take it. On the other hand if I need the job I might say a lower number to try and accommodate the customers budget. The key is to let them know what you are offering them before you give them a number because odds are they are comparing your price to another company.
BoweryJE22
That’s a really interesting approach. I’ve never been involved directly with sales (other than my limited experience selling coupon books for sports teams). Did you have a good bit of flexibility when it came to pricing? I’ve always wondered how different prospective clients might react to price negotiations. It seems like a sensitive/difficult game to play.
Something that stood out to me from reading this article was feeling out the situation at hand. Sometimes sales people are involved with clients and misread or misjudge them and go right into asking questions about financial or budget-related items. From my perspective, I feel it is crucial to get a good gauge of the situation and to feel it out. Usually one can tell whether or not the potential client is more inclined to talk about financial matters based off how the conversation is going. In order to get to that stage, asking relevant questions such as the ones Professor Sweet mentioned in class is essential.
In my time working in sales, budget was always a difficult topic to bring up. Careful tactics and observations helped a ton and knowing the company well before walking into the room was also helpful.
I also like Mr. Sweet’s approach of saying something like, “What if I told you a job like this nomally costs $x?” and then seeing how they react. I also am curious as Josh was regarding the flexibility of the situation
This is a key issue because of the importance of learning about the customers perspective. Having an idea of what they want allows you to make sure that you are selling in their range. A good way to find this range is the process that Mr. Sweet mentioned in class.
Budget is certainly a tough topic to approach. I think putting ourselves in their shoes gives us room to be empathetic with the customers.