People buy generally based on four points... Company, Product, Service and if you've done a good job on the first three Price... once you're at price, it either makes sense or it doesn't... It's one of the first things we tell them when we first sit down... (rather than re-type, here is a copy/paste reply of mine from another discussion on budgets that also covers what you're looking for)...
Metro M & L;6310802 said:
One way to approach budget: They won't tell you their budget. Never ask; the won't tell you the truth anyway. I have found it builds a tremendous amount of trust when YOU TELL THEM WHAT THEIR BUDGET IS.
In other words, you say something along the lines of projects like that go for somewhere around x and y, depending on the finishes and some other factors.
^^^👍
OriginalBldrs... A way to build on what Metro M&L said and to zero in on where their wallet actually falls is to offer ranges and then zero in on the sub-range removing the
"I don't know what or budget is" dance from the equation while setting yourself up as the expert in your field... this will also allow you to determine if this is someone you are going to commit time away from your family and other things or not
(i.e. - tire-kicker, can't afford your service, not a match, etc. - although we wish it were the case, not everyone is our customer)...
"Mrs. Can't-Make-Up-Her-Mind, for a project such as this, we have a few customers who are after your basic no-frills approach, which places the focus more on overall price and low-mid range products for their project to meet that goal, and that generally falls into a range $X - $X... then we have customers who are still price conscious but have been waiting for the chance to do this project, and are interested in more of the mid-high quality products with some added bells and whistles, and understand that it comes with added costs, and that usually falls into a range of $X - $X... then we have customers for whom money is no object and simply want the best of everything even if they don't necessarily need all that to give them a quality outcome; they want what they want, and that ranges from $X on up, depending on everything they choose... the more they choose, the higher it goes... (also sets up the discussion on how to reduce costs if needed)
Out of those three ranges, where do you think you envision your budget and tastes realistically falling most comfortably? (9 times out of 10, it will be the mid range)... Great, now the final number is going to be dependent on what we ultimately choose, but so we can tailor your project to products/services that match what your actual budget goal is to ensure you are happy with the outcome, does your budget range fall comfortably within that whole mid-range of $X to $X, or does it fall more to the lower, mid or upper part of that range?"
Doing it this way, it accomplishes a few things...
1. You demonstrate that you not only have customers from the different ranges, and that you understand budget constraints, but that you have options and products to work with in all those ranges giving you flexibility in pricing... this will come in quite handy when you have a customer who wants you to drop in price... they have to give up something in return as opposed to you giving up money out of your pocket or profit for your company (because funny thing is, everyone ELSE still expects to be paid even if you've decided to give up money without the customer giving up something in return)...
2. The double method really gets them zero'ing in on and identifying for you what their bank account will potentially allow (in most cases, they already know where they are getting the funds and the limitations of those sources whether it's how much they decide to spend is another issue) for the project as it takes them from giving/identifying an overall range in the first half to zero'ing on where they fall in that range so when you present the proposal that meets their words, it increases your chances of removing one of the big mental objections for the person presenting the proposal, which is price...
3. People buy based on Company, Product, Service and Price, usually in that order, and if you've done a good job with the first three and zero'd in on their budget ahead of time, it de-emphasizes the last one, Price, as a reason not to close... and if you preset the following question with "other than Price is there anything else we need to cover more?" (and address them all first), it then allows you to hit them with "and the best news is, we were able to provide you with what you were looking for in a (name the project) with the bells and whistles of what you were looking for, within the budget you said you wanted to stay in... (assume the close) so next, we need to discuss the schedule (as you turn the agreement to them to sign and hand them a pen)...
4. It's a soft-close approach so you aren't hammering them like a typical salesperson and instead of making them feel like they are being "sold" something, you're simply leading them to the decision as the expert in your field, which gives them all sorts of comfort and confidence...
When we first meet with a customer, we tell them
"look, we've been doing this a long time, and as we talk and get to know each other, I hope you'll get a sense of comfort in our company (Company), what we have to offer (Product), how we do it (Service), and you'll have confidence that we know our costs and don't just pick numbers out of the air but that what we do what we do for a reasonable profit but at a cost (Price) that works FOR YOU (emphasis added) and us ... but what I really want to emphasize with you is that you aren't going to have to worry about being "sold" anything or enduring high pressure sales tactics tonight... As you probably heard from Jane (if a referral for example) that's not how we operate and not what our reputation is built on (if it's not a referral and a way to work in you have a positive rep without being braggadocios)... so you can rest easy that there won't be any pricing gimmicks, like "manager specials" or "one time special discount offers" to entice you to buy but usually leave you second guessing what your price actually is and what you're getting yourself into... the decision should be a simple one, not one that you need to be "sold" on... if it's the right decision, it'll just make sense... so you'll know tonight what your project will cost with everything involved and it will ether make sense to you or it won't... there won't be any hidden costs, it will be a soup to nuts price, and the only time the price will change is if you decide to make changes on what we decide together" (also setting up the discussion for Change Orders)
All done in a conversational tone... if you remove reasons for them not to close (i.e. - objections) along the way in a conversational manner before presenting a price, with the above done in preparation, it INCREASES the chance of a close when going over the details of the proposal WHEN THEY ARE THE HOTTEST EMOTIONALLY TO BUY something they want to buy... if your objective is to not be away from your family at all hours the least amount of time possible throughout the year doing this part of your work, you're there to close, not visit, and having follow-up after follow-up, making change after change
(usually with you absorbing all the costs - which is just another way of saying you're leaking/losing money)... you can always make changes AFTER you've got them signed and committed and removed them from the market...
This soft-sell approach is even more powerful when the customer is a referral... but more importantly, it helps you develop the skill in how not to drop your pants in pricing or try to buy business, which wreaks havoc on the profitability of your business... it simultaneously gives you a powerful tool to combat those who want to separate money from your pocket or profit from your company...
"do you remember when we discussed how we know our costs and we don't play pricing games?..."...
BTW, once you've secured them as a customer and successfully completed the project by under-promising and over-delivering, don't forget to farm their warm market for referrals... they WILL be showing their friends and family... 👍
One of the best books I've read on the soft-sell and setting yourself apart is by Tom Hopkins... How to Master the Art of Selling... keep in mind all this information is not new... it's just in an easy to read/absorb format, similar in nature to a successful appointment...
Best of luck... 8^)
