How To Deal With A Fixed Budget

Written by Sean McPheat | Linkedin thumb

5 March, 2013

coins and banknoteMany times, your prospect will state that the budget they are working to is fixed, cannot be moved and must not be exceeded. They have a firm figure in mind and you would be asked politely to leave the office if you go beyond the stated figures.

I’m sure you’ve been in this situation, and I’m sure you’ll experience it again and again.

But how often have you gone to buy something yourself, with a fixed budget in mind? And how many times have you seen something that has swayed your decision? Have you sometimes had a fixed budget in your mind, and then persuaded yourself (or been persuaded by someone else) that something is worth spending more money on?

What made you change your mind?

I’m sure it was because you saw even more value in what you eventually bought, causing you to re-evaluate your original budget.

Take a look at that key word….re-e-value-ate. You are sizing up the value and seeing that something else is worth more. That’s something you can do with your prospect when they say they have a fixed budget.

Let’s say your prospect has stated a figure of XXX or less for their investment. And let’s assume you are presenting a new car to the prospect, but this can be used for any product or service…

“Ok, Mr Prospect, let’s make sure I understand what’s most important to you. You’ve told me that you want good performance from a diesel. You also need reliability and confidence in the vehicle because of your long journeys. Sat-nav and some of the optional extras are also important to you. And you also told me you’re only willing to look at cars £25,000 or less, is that all correct?”

Now you can determine whether that is a fixed figure or actually can be moved. You continue…

“If a have a vehicle that offers you and your family everything you want – the reliability, performance, economy and options that you want, plus others – but it’s listed at above £25,000, would it be fair to say that you would not like me to even show it to you?”

How do you think the prospect would react? They may say something like, “Well, if it has all that and more, I might be willing to have a look!”

“Great!” you reply. “Exactly how much more would you be comfortable with?”

“Well, maybe up to £27,500 but it will have to be something really special!”

Who just increased the budget? You or the prospect? They did, of course, and it was ll brought about with a quality, power question. Done with integrity and no pressure, you have found that the budget wasn’t as fixed as you first thought.

Try it with your product or service. If you really do have something that would be better for the prospect at the higher price, then you owe it to them and you to offer it. Gaining permission before showing it shows you have their interests in mind.

Happy selling!

Sean McPheat

Managing Director

MTD Sales Training | Sales Blog | Image courtesy of Marcus at FreeDigitalPhotos.net

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