Uncovering the Value of your Client’s Budget

Obviously when we're talking with a client actually establishing what their budget is, is very useful. I mean the dollar value. There will be other criteria around things, such as, timing, quality etc., but at some point in our conversation it comes down to money.

So how do we establish that? Start by using our old friend the Cheeky Question and just say to them, “look, if you don't mind, can I just put something on the table?”, then use Third Party. 

A lot of our clients actually understand that we've got to talk price at some stage and they're happy to get it out of the way because by getting price out the way, I can then give them something realistic.

So I've said, “I'm going to ask you something that’s a little awkward but my other clients have often thanked me and that helps with part of the setup around this”. From there you need to find out how much they're actually going to spend and again people don't give you a figure, and if they do, they tend to play with that figure thinking, I need to keep a little bit of negotiability up my sleeves just so I've got it there for later.

A way of making that figure move upwards and towards the top end is to not talk about a particular figure. Don't get that specific. Talk about a band. So talk about what sort of band of budget did you have in mind and what is the upper end? By saying, what is the upper end, you position them to think about the upper end of their budget. What you'll find is that people start to give you a higher number than they otherwise would. If you go, what's your budget? They go low. If you say, “If thinking about the band of budget that you've got from A to B, what's at the upper end of that budget band?”  And people start to give you a figure that moves upwards towards the upper end of their budget band because as human beings, we are actually geared up to answer questions.

 So the whole thing would sound a little like this, “look, if I could just put something on the table because it's going to come up anyway”, a lot of my clients have said, “the sooner we get the money bit out the way, the sooner I can give you something realistic to work with”. So you've obviously got some idea in mind, can I ask thinking about your budget ban from A to B?   What's the upper of their end of that budget band?”

And you would be amazed how many of your clients will give you a figure, still modified a little to help them negotiate, but higher than they might have done before and you can get that awkward “I need to find your dollars” out of the way.

So one last time, “if I could just put it on the table, if you don't mind, a lot of our clients are really happy when we get this out of the way because it makes sense that I give them something realistic. Can I ask if you have a figure in mind? What's your budget band? If you're thinking about the upper end of that. What would that be?”

And by doing that, you will uncover a key figure that will really help you in your sales process.

< Back