At some point in every sales conversation it becomes critical to discuss a budget with the client. While this can vary depending on the sale and exact process, it’s often better to bring up budget earlier rather than later in the sale. The main reason for this is that budget is of critical concern to a client, you may offer everything they need but if your price point is out of touch with them, you’ve wasted significant time and effort on something fruitless, or can lose significant leverage in the negotiation process. There are three main strategies you can take to find a concrete number, which I have outlined below.
\n1. Example Numbers\/Ranges<\/p>\n
One of the most useful techniques is to simply give them an example number and try and find their reaction. You might say: “If I were to come back with a number between ____ and ____, what would happen?” Or, “If this cost 10,000, would that surprise you?” The important thing is to get a feeling for their reaction, is price truly no obstacle? Are they maybe a bit on the price sensitive side? Get a general scope of how they feel in response.<\/span><\/p>\n <\/p>\n 2. Price Bracketing<\/p>\n Price bracketing functions very similarly, with essentially the same goal in mind. However, in this case you are giving them multiple brackets with maybe different functions\/product levels tied to them. For example:<\/p>\n \u00a0 \u00a0 \u00a0 a. 500-1000 for those who need x<\/span><\/p>\n \u00a0 \u00a0 \u00a0 b. 2500-5000 for those who need x and y<\/span><\/p>\n c. 5000-10000 for those who need x, y, and z<\/p>\n 3. Sticker Shock<\/p>\n Lastly, you can use the sticker shock technique, once again aiming to feel out the prospects view on price, but intentionally presenting them with a price above what you have gauged (through previous questioning) to be slightly above their price range. Then, you simply back down to a more realistic price number for your product or industry. You can follow this up with questions like “Would you be more comfortable seeing what you can get for x?” Or, “This might sting a little bit. Would you believe that companies are usually paying somewhere in the $_____ range for this product.”<\/p>\n Overall, the underlying principle is always the same. Prospects always, all the time, lie about money. You need to ensure you use the proper techniques to approach the financial aspect of the process in the best light possible.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" At some point in every sales conversation it becomes critical to discuss a budget with the client. While this can vary depending on the sale and exact process, it’s often better to bring up budget earlier rather than later in the sale. The main reason for this is that budget is of critical concern to […]<\/p>\n","protected":false},"author":3241,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-14021","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/posts\/14021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/users\/3241"}],"replies":[{"embeddable":true,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/comments?post=14021"}],"version-history":[{"count":1,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/posts\/14021\/revisions"}],"predecessor-version":[{"id":14024,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/posts\/14021\/revisions\/14024"}],"wp:attachment":[{"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/media?parent=14021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/categories?post=14021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/tags?post=14021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}