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How To Sell Bigger Than The Budget

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April 25, 2011

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If your car engine was making funny noises and you took it in to be repaired, it would be unsettling if one of the first questions the mechanic asked was, “What’s your budget for fixing this?” You’d much prefer that he diagnose the problem and offer you one or more solutions, along with the cost for each one.

Yet that question—“What’s your budget?”—is one that salespeople frequently ask in their initial discussions with prospects. And nine times out of 10, it’s the wrong question, says Jill Konrath, author of Snap Selling and founder of Selling to Big Companies.

“So many salespeople are told to qualify quickly, and if there’s no money, then move on. It’s part of their sales DNA,” says Konrath. But most prospects haven’t decided if they’re going to change from their status quo. In this economy, they typically don’t have money in the budget for new investments.

Konrath argues that any salesperson who presents a compelling enough argument for his or her products or services can put themselves in the running for a portion of a prospect’s budget.

“If you net it out—if you show them the increased productivity and significant savings they can realize by making a change—they’ll find the money for that change. They’ll move it from somewhere else if you’ve got a reason for them to do so,” she says.

Breaking the ice

“I don’t believe in qualifying like most people do,” says Konrath. “You should be selling the concept. That’s the basis on which I’ve always operated. It’s how I’ve trained people for years. And it works far better than chasing the low-hanging fruit that a gazillion competitors are fighting over.”

While she’s an advocate of consultative selling, Konrath says today’s “crazy-busy” customers don’t give salespeople enough time to run through a traditional consultative sales process.

“I love being a consultative seller, but a few years ago I discovered that ‘being consultative’ wasn’t the best way to start an initial meeting. You need to make assumptions that your current prospect has situations, issues, needs and concerns as similar companies in their industry. You have to prove that you’re a viable player before customers open up to you. Demonstrate your expertise up front. That’s how you earn the right to be consultative and have those candid conversations.”

Winning them over

Once you have your prospect’s attention, it’s time to let go of the outcome and focus on the possibilities, says Konrath. She equates it to the experience she had coaching a creative problem-solving team when her daughter was younger. She had a chance to observe how 14-year-old girls presented their ideas—and their peers’ reaction.

Konrath’s daughter spent hours coming up with creative ideas. She presented the ideas in detail, with personal attachment to each concept, yet few were accepted. Meanwhile, another girl almost always had her “half-baked ideas” accepted because she presented them with confidence and passion. Her description about what was possible kept the youth engaged.

Rosamund and Benjamin Zander sum up this concept in their book,The Art of Possibility. They write, “Enrolling is not about forcing, cajoling, tricking, bargaining, pressuring or guilt-tripping someone into doing things your way. Enrollment is the art and practice of generating a spark of possibility for others to share.”

People who are “enrolled” want to get involved, says Konrath. They believe it’s worth it, that a positive result—perhaps one they’d never thought of before—is possible.

Fresh sales strategies

Konrath offers these ideas as the foundation of enrollment:

  • Let go of the outcome. If you want something badly (such as the next meeting), people can smell it. They feel your need, your pandering, your push, and even your desperation.
  • Focus on the possibilities. Paint a picture of tangible outcomes so your prospects can see themselves as part of it. In order to do this well, you really need to understand your value proposition and the difference you can make for your customers.
  • Extend the invitation. Invite prospects to figure out how you can work together, what you need to explore next, and who else needs to get involved.
  • It’s not about your product or service. Instead, it’s about the difference your product or service can make. Tie your idea to what’s happening in their company. Make sure they know it’s about them achieving results — not you getting the sale.

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Paul Nolan is editor of SalesForceXP magazine, a bimonthly publication that provides sales managers with insights for getting “Xtra Performance” from their sales teams.

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  • eBusiness Appraisals.com 1 year 1 months and 4 days ago

    eBusiness Appraisals.com

    Great read! It drives home the point about making a compelling pitch to the prospective customer so that they would want your product or service badly, despite their budget constraint. This is especially important in this economy where small businesses have to tough it out with bigger competitors and put in more effort to reach more customers and widen their customer base. - Kate. Know the value of your business with a complimentary business valuation assessment: http://www.ebusinessappraisals.com/value-insight/

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