I've received quite a bit of feedback on the Five Most Important Sales Questions post. Most have been requests to address each question separately and in more detail. I'll take them one at a time, so here it goes.
- Are you budgeted to purchase this year?
Of all the questions, this is the most important (and most obvious). Regardless of how favorable the responses are to the other four questions, without this question being asked and answered with strong affirmation, nothing else matters. NOTE: (If they aren't budgeted and you are trying to convince them to re-allocate funds to your solution, then refer to Time, Tools and Talent post. Today, we are dealing with the situation where your prospect indicates interest and wants you to invest your time and money in selling them.)
The budget question doesn't have to be the first one asked, however. In fact, in most cases it shouldn't be asked until the question of where "they" are and where "we" are in their budget process have been addressed. Asking the budget question too early will undermine your credibility. Plus, when asking the "where" questions, you may discover the true answer to the budget question without having to ask it directly. But, make no mistake, you have to ask it BEFORE you agree to spend any more of your time or your company's resources in the sales process.
Being budgeted is NOT the same as being in the budget or being proposed for the budget. What you are trying to determine is if they have both the responsibility and authority to spend the money now and if it is already allocated. Quite often, we can get caught up in the strong desire of our buyer who has the responsibility for successful "application" of funds, but not the authority to "allocate" them. Understanding the difference behind the distinction can make a big difference in the quality of your sales pipeline.
There are literally thousands of websites that address the budget (read: price) "objection", but very few that actually address the harder question of whether the person you're talking to can actually spend money so here are a few ways you might ask the budget question:
- Are funds currently allocated for this project/purchase? (If so, you need to find out under what conditions the funding could be taken away)
- When do you need this up and running?
- Are there any other projects/business goals dependent on this happening now?
- Do you share this budget with anyone else?
- What happens if you don't spend the money this year?
I'm sure there other ways to ask the question directly in order to receive a direct and unequivocal answer. Don't get too cute and don't forget that once you ask the question, shut up! This is one question where the absence of a strong affirmative response is a negative one.
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