Many sales people are uncomfortable talking about money. Surprise, most prospects are as well and it really doesn't matter what level of experience each has, both may still struggle with the topic. The prospect wants to protect his purchasing power and the sales person wants to develop a solution that fits the budget the prospect is comfortable with. A typical impasse develops.

I remember as a novice sales person giving many a presentation without knowing what range of budget level was available. I'd proudly go back with a thick presentation showing three ranges of possible investment, a low, a medium and a high choice. One of two things typically happened. The prospect took the lowest investment choice or they wanted to negotiate a higher package at a lower investment choice and the fight began.

It's imperative that some ballpark investment level be established before a presentation is made or you are simply throwing darts in the dark and wasting both your time and the prospect's time. Have you ever had a response to a presentation that went something like, "This is great stuff but you're way too high." or "Sorry we didn't budget that kind of money." This is a sure sign that your budget step isn't complete.

Give the prospect some options during the 'needs analysis'.

Bracketing—Ask if you make a presentation between $X amount and $Y amount if they would be comfortable with that. If they aren't, its better you both know in advance.

Third Party Story—Compare the project to another you've completed and let the prospect know what the investment was. Ask if that would fit their budget plans?

There are several other approaches but one thing is definite, without some discussion about the budget, you cannot act as a proper consultant in your profession. A bad budget step can make you busy but it won't make you productive.

_{Reprinted from The President's Club Report, © Sandler Systems, Inc. All rights reserved.}

_{Copyright 2011 Sandler Training and Insight Sales Consulting Inc. All rights reserved.}

_{John Glennon is the owner of Insight Sales Consulting Inc, the authorized Sandler Training Licensee for the Interior of British Columbia. He can be reached at Error! Hyperlink reference not valid. or toll free at 1-866-645-2047}