Author Box
Articles Categories
All Categories
Articles Resources

Telephone Sales Reps and Prospectors: How to Bust the Budget Objection and Sell More

March 13, 2012 | Comments: 0 | Views: 127

The 'budget' is one of the most ambiguous - and consequently, most frustrating- objections in the world of telephone sales. If you can learn how to effectively master the budget objections you'll close more sales, plain and simple.

Here's the problem: there are several ways to interpret the "it's not in the budget" objection:

• Is your client saying, there's budget available but your price exceeds that which has been allocated?• Is your client saying, there is no budget for this particular item at all?• Is your client saying, we've got budget - maybe lots of it- but wants to chisel the price down?• Is the client really saying, "I am not interested" but is being nice about it?• Is the client hiding another objection behind the budget smokescreen?

Clearly you can't tackle the budget objection without some clarification. There are 3 steps to get you started:

Step #1: Pause

This is a bit theatrical but very effective on the phone. When you hear the budget objection pause for a brief second. This will do two things for you. First, it buys you a little more time to formulate your response and second, it gets your clients attention; they hear the silent gap and zero in on your next string of words.

Step #2: Acknowledge the Objection

After you've paused respond by saying, "I understand," or "budgets are important" or something similar. By doing so you've acknowledged you have heard the objection and that you're not dismissing it. You legitimize it. This reduces tension between the buyer and seller. It relaxes them and makes them open to further probing.

Step #3: Clarify if budget is indeed the true objection.

Here are some ways you can clarify if the 'budget' is the real issue or something else:

"Chris, suppose budget was not an issue would my product/service provide the fit you're looking for?" "Pat, when you say budget do you mean that the price of (your product) exceeds the amount you have set aside for such a purchase?"

"Kelly, apart from budget is there anything else that would hold you back from purchasing?"

If Budget is not the objection....

Obviously what you are trying to do is determine if budget is truly the issue that is preventing the sale. By isolating the budget the client must articulate further. If there are other issues that are holding them back this is where they'll crop up. Usually you hear things like,

"Ah... well... you know...we've been buying from ABC for 15 years now and...""Well... I'd really have to check with my boss on that..." "Budget's important but we are really quite comfortable with our current system..." " am a little concerned maybe it's a little too much for what we need..."

The good news is that now you know it's not really an issue of budget (or it might be budget PLUS something else). At this stage you need to pursue a new line of questioning to determine if the latest objection is also a smokescreen. But whatever the case may be, you are beginning to peel back the onion and are getting down to the core objection.

If Budget is the true objection...

If your client pipes up that he/she loves the product and it would work wonders for them but the money is not there, you can respond in a couple of ways:

Budget Buster Option #1: Work Within Their Budget

Again, turn to questioning to help you respond. Go ahead and ask your client what they do have established as a budget. You might frame it like this,

"Jeff, I'd like to see if there might be a solution here. Let me ask, what do you typically budget for this type of product?" (or, "What do you have budgeted for this project?") If the client is seriously interested in your offer they'll usually cough up a number because they want a solution.

Once the number is out there you can try to work with it. There are several ways to do just that:

-Do you have a 'lite' version of your solution (same product but perhaps with less features, bells and whistle) that fits their budget? -Is there an alternative product (a different make or type ) that will do the same job? -Can you reduce the quantity to meet their immediate requirements?

Budget Buster Option #2: Find the Budget For Them

In this scenario, you act as a 'consultant' helping the client look for extra dollars or value. Here are a few ideas:

-Outline the additional benefits of your offer (i.e., show the value of the product; for instance, the productive capacity is 18% greater which offsets the cost over the long run) -In a similar manner, toss in something extra to 'sweeten' the deal (which stretches the budget dollar further e.g., a warranty) -Ask if there are other departments or groups that can help with the budget (perhaps they derive some benefit as well?) -Ask about 'contingency' funds or special reserves that most companies have for situations exactly like these -Offer financing to 'ease the financial strain' over a period of time -Determine if there is a 'higher court of appeal' i.e., find out who can approve the deal if there's a case to be made -Perhaps offer a discount


Budget objections don't have to be deal breakers. If they are legitimate you can make a stab at overcoming them. If they are not legitimate, you have another shot at finding out the true objection. Either way, you are further ahead then you were.

Jim Domanski is president of Teleconcepts Consulting and works with companies and individuals who struggle to use the telephone more effectively. Author of four highly regarded books on tele-selling, Jim also writes two e-newsletters for tele-sales reps and tele-sales managers. He has also provides training and consulting to audiences, universities, and clients through the US, Canada and Europe. Visit his website at, sign up for his newsletter (Tele-Sales Vitamins) and download articles and download his Special Report: "The Top 10 Voice Mail Blunders and What You Can do About Them."

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:



Telephone Sales


True Objection Handling Objections






Budget Objection

In India, employment opportunities are set to grow by a good margin in the coming year, a phase which was started in the turn of the second decade of the 21st century. organisation, candidates with

By: Sarkariexam l Business > Careers Employment l April 01, 2013 lViews: 11708

Sometimes it is amazing to see that certain jobs can precipitate huge turnouts in the recruitment drives. It is as if thousands of people were waiting for the vacancy advertisements and the moment

By: Sarkariexam l Business > Careers Employment l December 30, 2012 lViews: 690

In recent times, jobs in healthcare segments have grown tremendously. It is anticipated that this growth curve will continue for the times to come. Various factors are responsible for this

By: Sarkariexam l Business > Career Advice l December 27, 2012 lViews: 448

Are you in a dilemma whether to choose web based CRM or not? If yes, don’t worry. You aren’t the sole person having this doubt.There are numerous firms trying to make out whether investing in a

By: Reneta Vasileva l Business > Customer Service l December 23, 2012 lViews: 409

If you think about it you will realize the fact that each business has its own set of risks that are involved in it.The trade secrets that you have and the information related to the business is what

By: brumbrum1 l Business > Risk Management l December 23, 2012 lViews: 263

As the time is changing, concierge management services are now growing despite the slowing economies of the world. The main reason of it is the need that is highly specific to the people who like to

By: willsmith10 l Business > Management l December 23, 2012 lViews: 334

Introducing carefully guarded secrets to hiring B2B inside salesman and telemarketers. It's not Vegas and you can't just roll the dice and hire anyone and you can't use a resume by itself either.

By: Mike B Cynarl Business > Sales Telesellingl June 19, 2012 lViews: 172

Telemarketing has long gone from the stereotypical image of cold calling salespeople. Today, telemarketing advocates now focus on the its capacity to get in touch with prospects and get information.

By: Camille A Thompsonl Business > Sales Telesellingl June 17, 2012 lViews: 181

Did you know your receptionists / telephonists could be making you more appointments and ultimately more money? Now, I'm not talking about your receptionists / telephonists making outbound phone

By: W J Simmonsl Business > Sales Telesellingl June 11, 2012 lViews: 208

Anyone who has experienced a fear of calling knows how miserable it feels. There's help! There's a treatment called Emotional Freedom Techniques (EFT) you can do yourself. Imagine how much easier and

By: Kimberly Schenkl Business > Sales Telesellingl June 02, 2012 lViews: 182

Talking too much is a common problem for Sales people, but there's light at the end of the tunnel if we can find that little bit of extra discipline in our daily working routine. Everybody loves to

By: David Lynchl Business > Sales Telesellingl May 27, 2012 lViews: 185

Cold calling can be nerve racking for many Inventors and they panic or go blank when the other party answers. They forget it is just another person on the other end. Here are some tips that might

By: Roger A Brownl Business > Sales Telesellingl May 26, 2012 lViews: 196

Call them 'white lies' but prospects often mislead you with false objections that through you off your selling game. Of course, it is not that customers are truly 'liars' but rather they want to get

By: Jim Domanskil Business > Sales Telesellingl March 13, 2012 lViews: 121

The reason why your B2B e-mail gets a low response rate is because your subject line fails to intrigue. By having a superb subject line and by developing a short but intriguing message, you increase

By: Jim Domanskil Business > Sales Telesellingl March 13, 2012 lViews: 110

Discuss this Article

comments powered by Disqus