Continuing our series of the mini articles about mistakes to avoid when selling, today we talk about another important element in the sales cycle, that of having a discussion about budget with the client.
I have experienced myself when visiting prospect clients with others that discussions about money is avoided. People are scared to start this discussion. And this is so wrong. If you want to sell your product (we are not in an offer for free world) then you need to understand if there is a budget in place that can cover the purchase of your service or product.
This discussion shall happen from the early stages (if you see there is a sales opportunity there); I would argue even from the first meeting, provided other conditions are met.
A budget discussion is part of qualifying a sales opportunity and without having such a discussion and get the green light, the opportunity shouldn’t be flagged as qualified as yet.
Making a budget discussion means you ask about:
- How much budget is approved – Hopefully it covers all costs involved. In some cases an agreement includes various costs.
- When will this budget be available – Important to know if it is in the second half while you believe you can close in the first half of the year.
- Who approved the budget – make sure that it is approved by the people that have authority to approve it.
As with anything else, such a discussion needs to happen in a delicate manner, understanding that your product is not the only one the client has a priority and urgency to buy. Stand in your client’s shoes to understand how costs affect one’s world.
Go there and do this discussion, it is absolutely fair and professional to ask this question.
Happy selling!