Home > Interview > Budget

Budget

Please post your scripts(s) for discovering the buyer's: "Budget." - by Jeff Blackwell
"What general price range are you trying to say in?" - by Jeff Blackwell
How much have you set aside in your budget for this? - by SalesCoach
What price range are you looking at? - by AZBroker
What is the most you can afford to invest each month for this? - by Agent Smith
What price range have you been considering? - by BossMan
Based on what you've told me you need, this project is going to cost you at least two grand... should we continue talking? - by ikrieger
the vehicle you are currently using costs you xxxx amount now, how much more where you planning for your next vehicle? - by Jaron Watkins
1. how has your company typically funded this sort of project in the past?
2. which projects are currently funded?
3. how do you see the process working to get this project funding approved? - by OUTSource Sales
Do you have a budget allocated?
Are you interested in financing such as leasing? - by GSHart
Please post your scripts(s) for discovering the buyer's: "Budget."
What amount have you budgeted for this year? Or are we looking to finance over the next two? - by sellin4alivin
When the client repeats it is not in my budget. How you mean? This finds, when the money is in the budget,this month ,next month in six months etc. This also finds a hidden or false objection.We have to realize when terms are met the ownership exchange moves forward.
Find out what fits the budget,How you can accomodate the budget before giving into a price issue.
I find when I ask what they thought they would pay I normally get an unrealistic amount shot back to me.I want to suggest a price and let them come back to a price that is realitively close to my suggesstion. I can justify a thousand dollar difference withmy value,two thousand is a little more difficult. - by rich34232
Ok... we've established an additional need of approximately $880,000 of additional life insurance. Do you feel this an appropriate amount or do you want to round it up to $1,000,000?

Assuming the answer is "Of Course!"

This is going to cost money so let's come to agreement before we move forward to see if you qualify for this amount, as to the premium range you're comfortable with today. Level Term insurance for 30 years is going to be $130 monthly or we could give you back all your money in 30 years for $175.

At the other end of ownership options is a permanent policy with both guaranteed savings values and dividends for about $1,000 a month. The advantages of this are that you are guaranteed at least $370,000 at age 65 with potentials for as much as $800,000 given past experience. In any case you have a host of guaranteed options.

Would you want to start here at $1,000 with guaranteed cash value returns, Term for Life with level premiums somewhere in the middle or the $175 convertible cashback term which runs out in 30 years?

Aloha... :cool: - by rattus58
I teach my clients not to us the word "budget".

I work with B2C companies and individuals, and it's too easy for someone to say "we don't have a budget" of "we haven't discussed it." So instead, I teach people to talk about "comfort level", as in "Tell me what you're comfortable investing in this project/product/service/whatever."

Consumers will often respond with "I have no idea what it costs."

Then, you can say, "Absolutely, I understand! I'm not asking you to guess what it costs, we'll go over that information later; but so I can point you in the right direction, i'd like to unmderstand what you're comfortable investing in this project." (basically, repeating the same question over again) and then be quiet.

Some prospects will lowball you in order to try to manipulate the best pricing. Others will highball you because they don't want to be embarrassed that their comfort level is so low. It doesn't matter. What matters is getting the financial expectations on the table so they can be discussed. As the sales interaction continues, one can then probe further to identify increasingly accurate information.

Skip - by Skip Anderson
Is price a concern? - by rich34232
I simply ask; Do you have a dollar amount in mind? - by MPrince
I simply ask; Do you have a dollar amount in mind?
Martha, the challenge I see with that is that it's too easy for the customer to say "no" (since it is a closed question). This is especially true since most prospects are a bit uncomfortable talking about the financial part of things, especially early in the sales reaction. - by Skip Anderson
Martha, the challenge I see with that is that it's too easy for the customer to say "no" (since it is a closed question). This is especially true since most prospects are a bit uncomfortable talking about the financial part of things, especially early in the sales reaction.
Skip

Here again is the difference in Media sales and other sales because in media sales if you don't have their budget the client knows you cannot put their proposal together. In Media sales the client will most often give you their budget before you even have to ask. So asking for the budget is not a problem. I get advertising requests all the time that will say something like this; I need a proposal with these guidelines;

Demographic female 18-49
run in prime and news
Budget; $15,000

Of course there will be more media jargon than what is above but you understand that in my business the budget is vital and the client understands that and in 99 out of 100 times they will give you a dollar amount.

MP - by MPrince
Skip

Here again is the difference in Media sales and other sales because in media sales if you don't have their budget the client knows you cannot put their proposal together. In Media sales the client will most often give you their budget before you even have to ask. So asking for the budget is not a problem. I get advertising requests all the time that will say something like this; I need a proposal with these guidelines;

Demographic female 18-49
run in prime and news
Budget; $15,000

Of course there will be more media jargon than what is above but you understand that in my business the budget is vital and the client understands that and in 99 out of 100 times they will give you a dollar amount.

MP
I'm taken by how all of these "sales experts" who comment on learning and listening, seem to power right through questions about understanding, as if they are either irrelevant or unnecessary.

I'd actually understand why you would probably have a budget if you do advertising and how you'd probably like to see what you could do to benefit the most by a wise budget expenditure.

I don't adverstise, but I've had people call to sell me advertising in both news paper and radio before and the question that one should have asked me was, "do you know how much you directly spend creating each sale you make?"

Aloha... Tom :cool: - by rattus58
I teach my clients not to us the word "budget".

I work with B2C companies and individuals, and it's too easy for someone to say "we don't have a budget" of "we haven't discussed it." So instead, I teach people to talk about "comfort level", as in "Tell me what you're comfortable investing in this project/product/service/whatever."

Consumers will often respond with "I have no idea what it costs."

Then, you can say, "Absolutely, I understand! I'm not asking you to guess what it costs, we'll go over that information later; but so I can point you in the right direction, i'd like to unmderstand what you're comfortable investing in this project." (basically, repeating the same question over again) and then be quiet.

Some prospects will lowball you in order to try to manipulate the best pricing. Others will highball you because they don't want to be embarrassed that their comfort level is so low. It doesn't matter. What matters is getting the financial expectations on the table so they can be discussed. As the sales interaction continues, one can then probe further to identify increasingly accurate information.

Skip
All good advice and very representative of real world scenarios. I also use "comfort" and "comfortable" in liue of budget.

In the advertising business, "budget" IS term that factors into discussion. I would guess though that some of Martha's prospects pretend they have a budget when they don't. - by Ace Coldiron
I agree with thought process of not calling it a budget.

I rarely speak of money. I bring up the dollars when I am ready to provide a solution to the client. By this time I have qualified the client on what they can spend and what they are willing to spend to upgrade.
My thoughts on asking about a budget I am now limited to fitting into that budget. However if I ask them what they did before and how they did it. Along with the questions of what they want to do better and who thier target is. This information allows me to extend thier budget to fullfil the want portion of what they want it to do better.I now have two proposals for them. One to fit the budget and one that satisfies the want.
I cannot provide stats but I am more then sure people pick oen when they have more then one to pick from.Give them three and you have answered the objections of I always receive 3 bids.I have heard when given three choices the majority pick the middle. - by rich34232
I'm taken by how all of these "sales experts" who comment on learning and listening, seem to power right through questions about understanding, as if they are either irrelevant or unnecessary.

I'd actually understand why you would probably have a budget if you do advertising and how you'd probably like to see what you could do to benefit the most by a wise budget expenditure.

I don't adverstise, but I've had people call to sell me advertising in both news paper and radio before and the question that one should have asked me was, "do you know how much you directly spend creating each sale you make?"

Aloha... Tom :cool:
Tom...The only time it would be appropriate for me to ask that question is; you are new to advertising your business and you have no idea what percentage of your overall sales should set aside for advertising. There is a mathematical formula you can use to determine a budget. Knowing how much you spend to create a sale will help you more than me. What I would need to know is how many sales do you need to make to reach your goals?

Martha - by MPrince
Precisely.... sn;

No one ever asked me that question and consequently I had no idea of what or whether advertising would be appropriate for me. As it is, we still don't advertise but my kids are full of dreams and so someday we're going to be addressing this question again.

Thank you by the way for your insights. They are very helpful.

Much Aloha,

Tom :cool: - by rattus58
You do not need an adveretsing budet to know how much it costs you to receive a new client. This is a business need to know.How much does it cost you to run your business.How much does it cost to set up a new client is a need to know to be a successful company. This must be included in your price of a said product to the client.


Your advertsing budget can increase as long as you include it in your product pricing covering the cost to do business.This is easier done with smaller companies then larger companies. I know this can be done as I had a small company that I sold. I did print and radio advertising. - by rich34232
Your advertsing budget can increase as long as you include it in your product pricing covering the cost to do business.This is easier done with smaller companies then larger companies. I know this can be done as I had a small company that I sold. I did print and radio advertising.
A budget is based on a percentage of sales or projected sales and usually follows a corridor of industry standards, such as 4% to 8%. The aggressiveness of the allotted percentage would often be influenced by overhead savings elsewhere.

As an example, a business doing five million sales annually and spending 350k on advertising (7%) would expect an increase ROI of the profit from one million in sales if they opted to spend an additional 70K for a campaign.

Budgets are tied in to ROI. If in the above example, the business enjoyed a gross profit of 40%, they would be investing 70K to earn 400K if their campaign bore fruit. - by Ace Coldiron
Some media salespeople actually use an ROI calculator as part of their interview/presentation with clients. - by Ace Coldiron
exactly ace. If I want to increase my advedrtising budget I need to increase my pricing to maintain my profit percentage.

At the beginning of every year for my company I made decisions based on what I wanted to accomplish that year. I did this 15 years in a row and am very happy I no longer need to think about these things. I wanted more business I had to increase my spending which meant I needed to increase my pricing to offset the costs of advancing.In my case I wanted a 12% profit. It is realitively simple
What I am suprised at was not knowing what it costs to maintain a client and to get a new a client. On average in the 80's a new client cost me close to 4 bills to acquire with advertising and setting up and maintaining the client all added into my price. I am quite sure a larger company's dollars are higher than mine were. - by rich34232
Precisely.... sn;

No one ever asked me that question and consequently I had no idea of what or whether advertising would be appropriate for me. As it is, we still don't advertise but my kids are full of dreams and so someday we're going to be addressing this question again.

Thank you by the way for your insights. They are very helpful.

Much Aloha,

Tom :cool:
Tom

When you get ready I will share the formula with you or if you like I can send it to you. It will help you determine exactly how much you need to set aside for an advertising budget.

Martha - by MPrince
Hi Martha.... :)

I'd be glad to here from you on this subject. We're moving into a new direction for ME right now with these kids in the business, and they are hard at work changing my life around.... ;bg

Much Aloha,

Tom - by rattus58
I say now folks, I can provide you with a scope of work to meet and exceed your needs. I have your price and estimate for this job right here (facing down and under my left hand) The price is what it is and in stone other than a few discounts we have for you, I would like to know what you were hoping to invest in getting (I say room for room) this all done?

I get the number right there roughly 90% of the time, if not I try a couple times and if still no, right after I tell them the price I ask again and I always have something by then. - by Mr. Mike
Great responses and a great question............

A really old question has been my stablemate for years......

'Which is more important to you price, quality or service?' - by PiJiL
Is it recommended that we ask these budget questions before or after discussing the prospect's pain? It would certainly be helpful to know before to save time on people who are looking to spend $5 on something that costs $1,000, but I'm not sure if it's too hard to ask right away. - by ShawnCBerg
It looks like the best solution for you would come out at ($your top top figure...i.e. high-ball)

How close to that could you get.....assuming we can get you the very best result that money can buy? - by helisell
Weekly Updates!
Questions and Answers about Selling
Subscribe to our mailing list to get threads and posts sent to your email address weekly - Free of Charge.