Interesting. I run a small 4 person sales team. We track, in sf.com, the reason prospects are not interested in our product. No budget is one of the drop downs.
I ran a report to see how many times we used the "no budget" reason...it was 43%. I am going to make sure my reps read this post and then have a training session.
Thanks for the kick in the butt!
I really appreciate the insights on this topic because I am sure many sales professionals run into this obstacle quite frequently. I am also glad you made a distinction between an objection and a "stall/ blow off" because it is very important to really understand all the factors surrounding a prospect response in order to apply the appropriate remedy.
With that being written, if you perceive that you are not dealing with a decision maker (or receiving a stall/ blow off) who offers "no budget" then I feel like it is fair to ask, "With all due respect, who else might we get involved to help us work through this?" This question may separate the truly needy from the more than greedy. An interested party will bring in everyone who can help push the thing through and a less than genuine smarty will simply push you back through the door you entered.
Finally, I must admit that I have been guilty of "moving on" when I get the "no budget" response. My logical justification is that there are tons of prospects who do have the budget and the interest in sharing it with me, so I will just call on them. This is tricky magic of course because it "rounds the edges" of a would be razor sharp sword and builds a tolerance for medicine I often need to keep my mind, heart and sensibilities strong.
Finally (again) Here are a few quotes from a book I am reading: (The Greatest Salesman in the World, Og Mandino)
- "Obstacles are necessary for success because in selling, as in all careers of importance, victory comes only after many struggles and countless defeats."
- "Each struggle, each defeat, sharpens your skills and strengths, your courage and your endurance, your ability and your confidence."
- "Each obstacle is a comrade-in-arms forcing you to become better... or quit"
@Bob - thanks for the feedback. You are certainly moving in the right direction with your team. One thing to think about is taking a deeper dive into “No Budget” since 43% of your losses are contributed to this factor.
I’m not sure if you are doing Win/Loss Analysis now but we’ve found it to be key in understanding why prospects really did not buy. If you have a chance take a look at our CloseRate Accelerator case study
about ATG. It gave them insight to what was working and not working within their sales & marketing groups.
@Edward - great qualifying question! I will give it a try when faced with my next “No Budget Objection”. I think as salespeople we are all (at one point or another) “guilty” of moving on as soon as we hear “No Budget”. That’s why it’s key to understanding your prospect’s needs and roles each person plays (decision maker, influencer, etc.) Also, The Greatest Salesperson In The World by Og Mandino
, sounds like a great read, I will check it out. Thanks again and keep contributing those great ideas!
Good comments all around, and I think the underlying trend here is that a "No budget" objection is one of two things--
A. They really don't have the budget. And before either party continues wasting time, get it from whoever has it.
B. They really have it, but have some other objection. In which case, identify if you're really meeting the prospect's needs, as Edward states, or figure out who else needs to be in the loop.
By the way, just wanted to give a quick shout out to you, Edward Williams. Haven't talked to you for a while.
@steve, Again great feedback! Keep it coming!
Just yesterday, I moved a deal along that a coworker had turned to "unqualified". The reason he turned it to bad lead: After a few minute conversation, she told him she didn't have any $.
Unbeknownst to me that they even had that conversation, I've been talking to her for a few months by email (we met when i responded to a blog post she wrote), blog and a few phone conversations. I actually have an interest in hiring her which is why I've invested as much time as I have. Yesterday, she emailed me and told me she'd like to become a client. We actually had to work through budget objections again once she found out the investment required, but I now have compelling need and an acknowledgement from her that we can really help her solve her online lead generation problem. She's currently looking at her finances and cash flow and she's agreed to make a decision on Monday.
@ Debbie, i lead a team where we deal with end users of desktops and laptops.
even though all we wish to do is keep providing excellent service in case of any issue faced by them... and major product we pitch for is extended service plans i.e. extending their warranty period of the product...
but major objection we face is - - - " i do not have money now !!!"
for obvious reasons it impacts the targets.
was trying to relate this post to my situation ... but still not very sure how to use the tips..