Budget is Not a Dirty Sales Word

5 Minute Read

Hello friends,

I am writing this off the back of a particular session on qualifying I conducted this week. This session was in the context of automotive sales, and although this article will be more specifically pointed at my fellow car people, the principles apply in any number of sales industries.

Many salespeople, when qualifying, start to get funny when it comes to asking about money. When we have been conditioned from childhood to recognise that you shouldn’t talk about money in social situations, and that money is a personal thing, it makes sense that there is a natural fear around asking about it. We don’t want to appear pushy or sleazy, or as though we’re overstepping the bounds of our role and intruding. I think in the automotive industry, because we’ve gotten a bad rap in the sales profession for so long that fear is heightened even more – no one wants to contribute to that sticky residue that still hovers around the stereotypical, old school concept of the ‘car salesperson’. Consequently, we’re even more sensitive about potentially sensitive questions.  

The purpose of qualifying is to establish as much information about the customer’s situation as possible, so that you can find them a product that is the perfect fit. What perfection looks like in a car, or a house, or a tech solution, is going to be different depending on the priorities, values and wants of the person judging it. The more information we can gather, then, the more we can truly help our customers by giving them a consultative and relevant presentation that aligns with what’s important to them. Qualifying also provides a platform to start building trust, get into a state of rapport, get to know our customer on a more personal level and show that we’re listening and we care.

Imagine this: You are a customer walking into a car dealership. You are greeted by a friendly salesperson who engages in a great dialogue with you, and asks about a number of things: who the car is for, what features are important to you, the size of the car, what kind of driving you’ll be doing, and so on. They don’t ask you about your budget. They then show you to a car, and it’s beautiful. They present the car and talk about how it fits with what you’ve told them is important to you. This goes on for a length of time. You really like the car. Eventually, in the process, you get an idea of how much it’s going to cost and… woah. It’s $20,000 more than what you can afford. Now, as a customer, you’re in the awkward position of finding a way to tell the lovely salesperson that this is way beyond your financial capacity.

Budget is not a dirty word. Asking about someone’s price range is not something to fear. On the contrary, it is necessary for us to be able to present an appropriate fit to the customer. If I engaged a real estate agent because I was looking at a house, there’s no point looking at a $3 million dollar home if I only want to spend $500,000 (although if I’m in Sydney, there’s probably not much point looking at all if I only want to spend $500,000. Keep dropping, please, real estate!)

There are lots of different ways that we can ask about budget:

What price range did you have in mind?

How much were you looking at spending?

How much were you looking at spending per week?

What’s your budget?

If you ask this earlier, and I’m a customer who has a very defined budget in mind, I’ll be thankful you did and trust that you’re going to direct me to appropriate products as a result. Money is personal, but if I am investing in a large product, how much money I want to put towards that is going to come out eventually – it may as well be early enough in the process that we can both have a good understanding of each other. It’s up to the salesperson to display the leadership required in the qualification process, and to do so with certainty and confidence.

Connected along this line is the question how were you looking at funding the vehicle?This is, of course, directed to a question of whether someone is financing as opposed to paying with cash. Again, we see hesitation here in asking this question out of fear of causing discomfort. Again, though, the same principles apply: If I am interested in financing, I’m going to be glad you asked. If I’m not, then it’s an opportunity for you to make sure I’m aware that there are financing choices available.

If, for some reason, you have a customer who is hesitant to answer or questions why you’d need to know that information (this can happen with any question, not only ones around money), then your response is quite simple. You calmly and respectfully explain why you asked the question.

E.g. ‘Mr Customer, the reason I ask is because if I have a good idea of your price range, I can make sure I’m recommending a car that most aligns with your needs.’

‘Mr Customer, I ask because we have some great finance choices available at the moment and if you had any questions about it I’d be happy to talk through that information with you.’

Delivery should be calm, clear and friendly. Sometimes people simply feel wary of giving information because they don’t know why it’s relevant, and explaining the reasoning can help keep you on the same page.

I think most people enter sales interactions over large investments these days with the expectation that budgets will be discussed. Often, it’s a limitation the salesperson creates in their own mind because they have convinced themselves they’re going to look rude or intrusive. This information is relevant and beneficial to both parties to have out in the open.

My conclusive point is this: Don’t be afraid to ask.

After all, asking for the budget means you can truly help your customer.

Make Today the Day,

Sonia

This blog post was originally posted on my training website, Statusone.com.au, on Nov 9, 2018. I have since been moving some of my favourite blog posts from there over to here, as this is now my ‘content hub’ and I want you to have access to some of the cool stuff I’ve written about before. You can still check out the Status One site if you’re interested in corporate training if you want. Also, don’t forget to sign up for the newsletter below for updates and weekly exclusive content.