June 17th, 2023
The truth about budget objections and how to handle them
If you sell things, you have definitely heard your customers give you budget objections. It doesn't matter if your customer is on some type of contact, financing, recurring payment or is contemplating a single transaction, customers are going to express some type of concern regarding their budget.
Going 'over budget' is one of the most common things that customers do.
So why do salespeople struggle with budget objections and what is the best way to handle them? Let's discuss...
Let's start with the truth: most people have a budget and go over their budget all of the time. The same customers who are giving you budget objections are the same customers that went over budget on their house, their car, their entertainment, their clothes and nearly everything else that they own. I'd be willing to be that you do go 'over budget' fairly often as well.
I'm not suggesting that most people are foolish when it comes to managing their finances or are foolish with their money (although I do believe there's a reasonable argument to be made that most people struggle with financial literacry in general). What I am suggesting is that most people have specific things that they are willing to pay extra for.
One of the things I'm most likely to go over budget on is cars. I currently own to new Porsches and recently bought my wife a new Mercedes-Benz. Obviously, I could choose to dramatically reduce my family's automotive budget and buy cheaper vehicles to drive.
When you're selling your product and your customer gives you a budget objection, the thing you need to understand is that your customer is focused on the money - not the added value.
One of my favorite questions to ask is, 'when is the last time you truly regretted spending a little bit more than you should/could have for a better product, service or experience?'
The reason why this question is so incredible is because no one that you talk to will be able to think of a time where they paid more than they had originally budgeted and could have spent for a better product, service or experience.
Have you ever heard anyone complain about sitting first class on a flight because it cost too much or was out of their budget? No.
Have you ever heard of anyone complain about having a higher car payment after getting the upgraded engine, navigation and leather seats? No.
Every time I ask this question, my customers laugh after coming to the realization that going over budget is normal and they never regret paying a bit more than they wanted or expected for the product, service or experience they really wanted.
Instead of trying to offer discounts or other financial incentives to get your buyer to purchase your product, ask them if they can recall a time when they regretted going over budget for what they really wanted.
After they say 'no', let them know this purchase won't be the first or last time that they do so and go in for the close.
If you're looking for specific word tracks to handle customer objections, I would highly recommend grabbing a deck of Cashcards: Flashcards for Closers so you can get your hands on 50 proven objection responses that you can use to close more deals and make more money.
If you're feeling more ambitious and want live coaching and training from me, I'd invite you to apply to join my Sales Academy for an immersive training experience that will help you dramatically increase your sales.
On the off-chance that you have budget concerns yourself, I'd advise improving your sales skills so you can increase your overall budget and enjoy a better lifestyle.
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Written by Jordan Stupar