How do you manage the "we have no budget" objection?

I see a lot of veiled hostility towards clients here like "code speak" and "lying"--I get it, there's always a suspicion that you are getting blown off. However, what "no budget" tells me is that I have not done my job to cultivate a deep enough relationship with this prospect to get at the true drivers or even to discern whether it's a valid response to begin with. Rather than blame the client or assume a dissembling maneuver, I try and first look at myself to see what I can be doing better. Typically it's that I am not asking the right questions. I guess my main point is that once you are at odds with your prospect/client in your head, it changes your engagement with them and can become a self-fulfilling exercise.

No, no veiled hostility, rather context.

As I mentioned in my previous post: Are they qualified? Did they approach you?

I am speaking from that context as we do not attempt to sell to prospects "cold". If they have indicated that they have a need and are in fact actively looking to do something about that need, and as a sales professional you move through the appropriate process and discovery, when you present them with a proposal that they requested, for them to at that stage counter with "no budget" is, as the Larry mentions, "smoke".

well , it depends on the fiscal year of the company which as sales person we need to find out about it before we go for the sales meeting , if we are approaching the company in a time which is far away from their fiscal and they give us the No budget answer it is obvious that they are lying so we need to look for the real reason and try to solve that one . In all , I believe any kind of objection is a sing of buying so no need to be worried about it.

Cheers

No budget comments I tend to ignore. In my line of work any company is spending money whether this be an operational expense or capital depreciation expense. I feel it is up to the sales person to bring to the table costs asscoiated with their current practices versus what can be done to streamline these expenses. Of course, no company is wanting to spend money unneccesarily but they are spending money with their current business practices already. No budget is a great way for them to create the smoke screen.

Personally I do not like to be in a position where they have indicated they have a need. I feel this puts you in very unique position, not good in my mind. In circling back to the original question by Dave is I feel this no budget option is created when the potential client has seen no value with your sales process and uses this as the main objection to get rid of the sales person. In any degree of sales if you come up with the current financial situation and then create a program which lends more perceived value than they are currently receiving and by the way there is some kind of cost reduction, you will win more often than you lose. No budget means you have not built the buinsess case for them to make a potential switch to you.

Glad that works for you.

Price objection doesn't always has something to do with the limited budget. But limited budget is usually a standard way to refuse you as a salesperson. The problem is that the client doesn't perceive enough value in the product that you are offering. If the product is a perfect match and is the key to solving the problem - every decision-maker will for sure re-arrange the budget. So, focus on value, try to predict objections by learning more about the client and his needs, offer unique value.

P.S This article can be helpful for you - check it out should you have a free minute http://www.soldlab.com/news/2011/5/18/the-objection-detective-to-read-more-sa...