How do you negotiate with customers who are price-sensitive or have limited budgets?

Asking good questions in Discovery is absolutely essential to helping you tailor your solution and communicate value. It's also imperative to know the consequences the prospect faces if they don't solve the problem they have. Ask this question: "If you don't solve this problem, how will it affect your business in the next 6 months?"

At our company, we prioritize understanding our customers deeply. Through meticulous data analytics and surveys, we gain insights into their demographics, educational backgrounds, and unique learning needs. Moreover, our enrollment process includes a Payment Qualified Leads (PQL) analysis, allowing us to identify their budget limitations accurately. Our dedicated Coordinators then leverage this information to tailor their pitches effectively. With a wide range of options spanning from 2,000 to 285,000 rupees, we ensure there's something for everyone. Every customer matters to us, as our ultimate goal is to empower more skilled professionals in India.

Always remember, while customers have a budget and price segment they take as a priority in their mind, but once they realise they will make profit / seeing the advantage about the product, their thought process will change... Until then they don't see the advantage and their mind will have a block to invest

when dealing with price-sensitive customers or those with limited budgets, it is essential to emphasize the value proposition of your product or service. you can : 1-highlight cost-saving benefits: Explain how your offering saves money in the long run or provides better value compared to cheaper alternatives. 2-Offer flexible payment options: Provide installment plans or discounts for bulk purchase to make it easer for customers to afford your product. 3- Provide alternative : Offer a rang of products or services at different price points to accommodate varying budgets. 4-Focus on quality :Emphasize the quality and durability of your product, reassuring customer that it is worth in the investment despite the higher initial cost.

We at Octog take a consultive approach during the requirement-gathering phase. Most often customers have an idea about what they want and have a budget in mind. We ask questions to understand the purpose, the problem(s) they are trying to solve, and any pain points they may have. We as a solution provider offer them solutions that will solve the purpose, pain points, and maintenance. When the price is above their budget, we offer them alternate price constrained solution which may not solve all the problems. We will clearly explain the pros and cons of choosing either of the solutions and help them make educated decisions.

Someone once said, cost is only an issue in the absence of value. Be clear about what value you bring to the table. Show what life would be like without your help. Ultimately, not everyone is going to be a good fit and that's okay.

I would add that a common mistake salespeople make here is focusing on features not outcomes. Prospects don't care about the features of your product or service, they care about how it will improve their life or situation. So, tell stories about similar clients you have helped and focus on the outcomes they experienced as a result of working with you. Help the prospect see themselves in the story.

The best way is to do FAB, Features, Advantages & Benefits. When we do this the value of the product increases and the customer probably feels that the budget in his mind has to be paid. I remember once when i was buying a scooter, the sales person did this on me. I being, a sales person myself could recognise this and he explained, FAB for his product and especially the height of the scooter which was a concern for me. But since he showed that his scooter had the advantage for me and i would get the benefit i did not mind the price. So FAB is an important concept to be used in a sales cycle.

It's vital to shift the focus to the value proposition of your product or service. Highlighting the tangible benefits, outcomes, and solutions your offering provides can resonate more deeply with customers than simply discussing price. Emphasize how your solution addresses their specific pain points, helps them achieve their objectives, or delivers long-term cost savings. Differentiate yourself from competitors by showcasing unique features, superior quality, or exceptional service. While demonstrating the value you bring to the table, you build trust and credibility, ultimately convincing customers that your offer transcends mere price considerations.

A key ingredient to showing your value in negotiations is not just the value of your product or solution, but yourself as an asset and professional. Showing YOUR value, through your skill, attitude and preparation for negotiations, will help you establish sources of power in the process. Such as legitimacy, insight, finding needs and solutions and finally developing relationships.

Think in terms of "onramps". Can you create cost effective solutions which serve as an onramp to your core service or product. For instance, a consulting firm we work with created a membership option that costs a fraction of what their high-end consulting costs but gives the budget conscious customer a way to engage with their team and develop trust in their services in a very cost effective fashion.

Here are some great principles to remember when you enter into the negotiation phase of a sales conversation. 1) Check your emotions before the call/meeting. Are you feeling anxiety? Try to identify the root of that emotion and address it. 2) If you fear a negative outcome, reframe your mind to envision a positive outcome instead. 3) When in the call, if emotions get tense in the conversation, pause, take a deep breath and recenter so that you don't inadvertently ramp things up. 4) Clarify messages. Ensure what you heard is what the person actually meant to convey. 5) It's OK to take a break when a conversation gets a little adversarial. Either pause a beat before proceeding or ask for more time to respond

While it's essential to be accommodating, recognize when a customer's budget constraints are too restrictive to justify the value of your offering. If the negotiation reaches an impasse where you cannot meet their needs without compromising your own business objectives, it may be best to gracefully walk away and focus on prospects with a better fit.

Well it's good to look at the pocket of the buyer and their intent. Some customers will come with a mind set that they will only pay so much for a product. We as sellers will have our last price, some times it will not be possible to go below the price, but help them understand this and then incase i can get a deal done, with the customer to take a video byte or some references we can reduce the price and consider this as a marketing budget spend. Well this cannot happen all the time but sometimes. As some one says they don't have the budget then politely move on to find the next customer who can pay us the money.

In this case check whether you have authority to imparting education to your customers. May be your product of services are to early for somone. Let them think over it and have patience and preserverance.