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Solution vs. Budget

Posted by Jack Kasel on Wed, Feb 27, 2019

Typically, when a salesperson doesn't win an account it's due to a few different factors; the prospect didn't have a compelling reason to make a change, the salesperson didn't do enough to uncover their capacity to invest, or the incumbent wasn't properly eliminated from the running.

In this article, we discuss the 3 Rules every successful salesperson must follow in order to eliminate stalls and objections during the sales process.

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There is an age-old debate about which came first, the chicken or the egg. While that debate may never be solved, there is one “which comes first” situation that shouldn’t be up for debate and that is “see the solution first or know the budget first?” 

In my work with helping client’s develop their sales talent, I know there are two topics that get avoided on a regular basis, and both are to the detriment of the sales person. Those two “taboo topics” are discussing the incumbent and uncovering the budget. I will address the incumbent discussion in a later blog.

When I refer to the budget, I am referring to it in three categories commonly known as ‘TMR’—Time, Money, and Resources. What are they willing to commit, in the context of time, money and/or resources to make their problem go away? It is my experience that the stronger sales professionals don’t shy away from that discussion. They are successful because they follow these rules.

Rule 1#

Have the conversation. The 800 lbs. budget gorilla is in the room so talk about it. Don’t make it part of your opening conversation, but don’t ignore it either. If the need is big enough, and your solutions fixes it, most of the time, they will find the money.

Rule #2

Provide context. Regardless of the investment your prospect needs to make to fix their problem, it needs to be framed in the context of their pain and your ability to eliminate it. If the pain is minimal, then your solution won’t seem that great. We’ve had prospects tell us their problem is a “two-comma problem” meaning their cost of turnover was over $1 million dollars. That’s context.  Know their cost before you proceed

Rule #3

Don’t show your solution until you know the budget. It’s really that simple. If you have ever provided a solution to a prospect only to hear them say “that’s more than we intended to spend”, then you have an issue discussing the budget. Does it make sense to know their appetite for change, including budget, before you provide your solution? Here is where the strong sales professional is different. If the prospect doesn’t want to discuss budget, they know it can be for one of two reasons. They haven’t uncovered enough pain or the prospect simply wants to use you as a pencil sharpener for the competition. You don’t get paid to be a pencil sharpener so don’t become one.

In closing don’t be afraid of the conversation. In the history of sales, no one died from discussing budget. I doubt you will be the first.

Topics: how to get a commitment to buy, consultative selling, providing value to customers, qualified leads, sales acceleration, sell faster, overcoming rejection

Sell Better, Sell Faster, Sell Smarter

Posted by Tony Cole on Tue, Dec 18, 2018

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When a company first starts out, there probably isn’t much of a sales process, or team, in place. The one or two advisors target prospects, introduce them to the company, and close deals according to their own preferred methods.

Of course, as the business grows, sales leaders must implement a repeatable, scalable process to turn a trickle of income to a steady, predictable stream. With all salespeople using the same systems and playbooks and adhering to the same process, the sales organization (hopefully) becomes a well-oiled machine instead of a Frankenstein-esque contraption stuck together with duct tape.

What’s the secret to accelerating sales growth? While people and process usually precede systems, sales is somewhat of an exception. The right Customer Relationship Management system (CRM) can help empower people and define process.

The right CRM system can accelerate your business’ growth, bring in profitable, happy clients, and enable your sales team to sell better and faster.

Sales today is a far cry from what it was just 20 years ago. The advent of search and social media means sales requires research and careful customization as well as knocking on doors and building relationships.

But different doesn’t always mean better. Even though changing times necessitate new approaches, some salespeople merely transfer their old methods to modern channels and sometimes they are still effective because of their relationships and network.

As with the introduction of technology into the workplace, change is coming if it hasn’t already- and change is hard. But the right CRM system can not only enable salespeople to update their practices, it can also give them a competitive edge in the market.

Read more of The Definitive Guide to Selling Better and Faster by clicking on the button below.

 The Definitive Guide to Selling Better & Faster

 

Topics: CRM, sales acceleration, sell faster

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    About our Blog

    Founder and CLO Tony Cole has been working with financial firms for more than 25 years to help them close their sales opportunity gap.  He is a master at using science based data and finely honed coaching strategies to help build effective sales teams.  Don’t miss his weekly sales management blog insights.

     

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