From The Editor's Desk

Budget Is An Estimation, Not A Fact

It’s not in our budget.

The above statement is a common fallacy of a rejection notice. A bit of finality to the pitch. Never would it be considered an opening. After all, it suggests that the company doesn’t have money to spend. Or if they do, they don’t have money to spend on your product.

But budgets are estimations. They are designed by bean counters to keep costs under control and set 6-10 months prior to the entire annual schedule in which they will be used. Budgets also provide a great lesson in patience, for the seller. It’s an opportunity, not a rejection.

Let’s say that it’s true, the company doesn’t have money earmarked at this moment for the current fiscal year to purchase the product. What each sales person needs to be asking is simple:

How can we find room in your fiscal budget to purchase the product next year?

This is the difference between short and long term planning. Everything isn’t going to be sold during the minute that you pitch it, especially if it is a higher-ticket item. But that doesn’t mean that you give up, or simply come back a year from today, in order to pitch the product again.

Try to sell the product now, for a year from now. If that’s what it will take. Get the purchase order and estimate complete, submit for signage with activation for a year from now.

What will surprise you, as well as the business, is how the company may find room in the current budget to spend on the product. Thereby reducing the entire commitment a year from now.

No organization spends their entire budget. Often, at the tail-end of their budget cycle, there is money to spend otherwise it is gone. Check back consistently, get the full story, and see if there’s perhaps more wiggle room than first thought.

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1 Comment

  1. September 16, 2016 at 4:33 pm — Reply

    It is also important to remember that of course the company doesn’t have money in their budget for something new or unique that you are bringing to them.

    As a salesperson, it is your job to educate the buyer on the value that you or your product or service can create for their organization.

    Most objections come down to value.

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