8 tips to uncover a prospect’s budget during the sales process

Do you struggle to talk about money during sales conversations??

If so, you’re not alone. Us Brits, especially, have an in-built, irrational fear when it comes to broaching the subject of dosh, dough, moola or swag (despite the fact we’re great at coming up with amusing slang alternatives).

From an agency’s perspective, the failure to talk about money early in the sales process increases the risk of wasting time on poor-fitting 'opportunities'.?Far too often proposals or pitch decks are put together in the hope the prospect is willing (and able) to invest at the appropriate level.?

Using a proposal in this way - to qualify budget - is fatally flawed. Written words are no substitute for open and honest conversation. I do, however, appreciate the budget conversation is not always an easy one. Not helped, of course, when a prospect chooses to withhold their budget. Or, they might say, ‘why don’t you tell me how much it’s going to cost?’?

In other instances, a prospect may approach you without having a budget at all. I’ve no problem with their need to do some research to obtain a ballpark figure. But not if it means you throw a load of time into writing a proposal to provide the answer.?

In each scenario, it’s your job to identify where the prospect is in their buying journey and, importantly, not to overcommit resources to those in research mode, for example. Remember, there is no cost to a prospect when they ask you to create a proposal. But there is a cost to you. Always seek to protect your time.

With this in mind, if you find money a difficult topic to address with a prospect, here are a few tips to help you along:

Firstly, talk about money early in the process

When I say early, I mean on the first call. To do this, you’ll need to tee up the meeting, explaining its purpose and goal. You might say something like:

"We tend to work best with clients who…(DESCRIBE IN A FEW WORDS YOUR TYPICAL CLIENT AND THEIR SITUATION).

The purpose of this first conversation is therefore to establish if we are likely to be a good fit for you and vice versa. I’ve got a few questions I’d like to throw your way and I’m sure you’ll have a few questions for me.?

If we get to the end of the call and agree, in principle, that there’s a good fit here, I suggest we arrange a second meeting where we can explore your requirements in more detail and how we’d work together. We can also bring in some of the subject matter experts from our side and anybody from your end that needs to be involved.

How does that sound?"

Note: this assumes an inbound lead.?A prospect you have reached out to who agrees to a meeting requires an altogether different approach.

Then explore where they are trying to get to?

Uncover the results or outcomes the prospect is looking to achieve BEFORE broaching the topic of money.?Once you understand their goals, say something like:?

"What are your expectations in terms of investment to achieve those goals? Can you share with me how you arrived at that figure?"

This highlights to the prospect the direct relationship between the amount they need to invest and the outcomes they desire. It’s remarkable how na?ve people are to this - I can’t tell you how many conversations I had in my agency days where a prospect aspired to X10 the size of their business before revealing a shoestring budget to do it.

Eliminate ‘cost’ from your vocabulary

Notice the use of the word ‘investment’ above, as opposed to budget or, worse, ‘cost’. The latter is a particular bugbear of mine when reviewing agency proposals - if something costs me time, money or effort, I don’t feel particularly enthused. It’s got negative connotations. ‘Investment’, on the other hand, tells me I will get something in return.?

Politely push back with a question

If you are asked to provide an estimated figure before you feel ready to do so (because you haven’t yet gathered enough information), put the ball back in the court of the prospect. You might say something like:?

"The amount our clients invest will vary depending on a number of factors, for example, X, Y and Z’. Do you have the time to explore these now or shall we arrange a call for another time?"

Refer to how much your other clients are investing

Without naming them, use your existing clients as a benchmark. You might say something like:

"We work with a number of clients facing a similar challenge. They are typically investing between ￡X and ￡Y to achieve results comparable to those you are looking for. How do you feel about that level of investment?"

State a minimum fee level

In line with your ‘ideal client profile’, try stating the minimum amount you get out of bed for. You might say something like:

"We occasionally make exceptions, but our minimum project fee is ￡X. This reflects the typical size of client we work best with and what they are looking to achieve. Does that align with your expectations?"

Share some options

Providing three options and asking the prospect to choose one is another technique to try. You might say something like:?

"We offer a number of solutions and pricing options. For client A, we are typically doing X and they will be investing Y. For client B, we are typically doing X and they will be investing Y. And for client C, we are typically doing X and they will be investing Y.?

If you had to choose one of those options, where would you say you sit at this stage?"

Show them that you are prepared to walk away?

Finally, if you still can’t get the prospect to open up, explain how you are unable to take things any further. You might say something like:?

"Our agency has a policy of not writing a proposal until a budget has been agreed upon.?I wouldn’t be able to progress things further without confirming the amount you are able to invest in this project. How do you think we should move forward from here?"

Using the word ‘policy’ is a tip I picked up from the brilliant 2Bobs podcast. It tells the prospect that you have documented your approach to the sales process and would be ‘breaking the rules' if you were to progress without an agreed budget.

If, after trying these approaches, the prospect still won’t divulge their budget, then you might want to consider whether they’re the kind of client you really want. The sales process is a window into what it will be like to work with them. If they aren’t demonstrating a high degree of openness and collaboration now, don’t assume this will change later on.?

If you’ve developed the courage to approach the money discussion head-on, you’ll also have the courage to walk away.

Give these tips a go and let me know how you get on.