How do you respond to the objection of "I don't have the budget" or "It's too expensive" in direct sales?

All great points. I would make them comfortable and just say " That's okay." It sounds like there are other priorities or project at the moment. Perhaps I'm going a bit overboard here, yet would it be a bad thought to explore if there is even a business case to be made. That will open things up for dialog.

An obvious response to this objection is to ask them what is the cost of NOT proceeding with the deal? In most cases, the bottom line losses based upon not taking action far outweigh the cost of sale. I would always try and consider their business, where are they losing money, how can my product/service help them improve and how can I make it effective for them in the shortest amount of ramp-up time.

Interesting approach - I think its fair to say what one person considers expensive is often deemed affordable by another. Plus, I am not a fan of the urgency and scarcity approach - it feels a little bit aggressive...instead I would explore if I have explained the value clearly, ensure my suggested solution is a match for their challenge - ensure I have done right by the client. Afterall we are there to help them make the right decision for them...mostly prospects are terrified to make the wrong choice, so perhaps phasing the project my help, with various perceived exits...reduces the perceived risk for the prospects and allows flexibility in delivery.

I also like to ask “when you say you cannot afford it, do you mean the full payment, or the value of what I’m offering? What exactly are you not sure of?” This will make them open up about a specific reason they cannot afford and I will offer solutions tailored to that.

Acknowledge the clients concerns, show empathy, but the key is to communicate that you heard the objection (or question) without immediately agreeing with or combating it. E.g., “I can certainly understand why you might have that concern.”

Rather than offering a full money back guarantee, in my experience it can be beneficial to offer a reduced/discounted rate for an interim period. This is then a valuable sales tool as it helps you close the deal at the outset and it also provides some insurance against a refund or the client leaving you within 30 days, as you can simply offer to extend the discount if they are not fully happy with the deal after their onboarding period.

Apply partial empathy-based consent. This technique is based on the development of the customer's mind, and on the discussion in a sharply positive way. E.g., "Yes, I accept that it is expensive, but at the same time it guarantees quality and high post-sales service."

If the real reason is budget, and not some other, as yet unknown issue, then try working with terms if it is a lease purchase. 'No payments for 6 months, buy down the rate to get them to 0% or similar' these act as stress relievers and demonstrate an understanding of their issue(s). It may help them get past the objection. If an X% price reduction will get the deal done and doesn't destroy the margin, then I may offer it in return for something of value for me. " Ms. Johnson, I can get to that price, and would ask that you agree to XYZ," Example Write an article, contribute to a webinar, post a review, whatever is appropriate. Lowering price without a fair exchange is never a good option.

CPR....Cut-Pour-Remedy It starts with good discovery, learning about their objective/goal and the "pain" around it. If they push back on pricing, refer back to what you uncovered about their pain and apply CPR. Cut into their pain, reminding them of what they're experiencing in pursuit of their objective. Pour salt into that pain. Ask them how will they reach their goal doing without your product/service. How much longer can they continue as is without a change. The answers are not for YOU, the salesperson, but for the CUSTOMER to be reminded of their pain point or challenge Getting them to buy-in to why they need to do something different. Remedy-Get them to visualize how your product/service can help them reach their objective/goal.

I read something a few years back that has stuck with me and been a successful response. Ask them “What is their COI (cost of inaction)?” If they do nothing what happens to their business in comparison to competition? If they are always chasing to catch up, they will never be ahead!

Respond convincingly, "Yes, the price is significant, but compared to the amount this problem may cost you latter; if you don't solve it now, you may not have this opportunity to address it again, it's little money."

Use the right to choose approach, "What arguments can convince you that you are making the right decision? Or, "What do you think the product lacks to be perfect for you?"