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Overcome the Budget Roadblock

July 02, 2015 4 Comments

Overcome the Budget Roadblock

Hey, it’s 4th of July weekend. Every year Americans celebrate their freedom and independence by shooting off fireworks, barbecues and heading to the beach. But in a country known as ‘the land of the free’ the reality is most people are not free! Living paycheck to paycheck is not freedom! Being an American also doesn’t mean you are automatically entitled to freedom. You must create your own freedom no matter where you live or what country you call home. The only way to have real freedom is to create massive success and you won’t create massive success if you let roadblocks stop you. Real life is not the lyrics to the National Anthem, a commercial about the way things should be, a poem or a song. Life is hard, brutal, and many times unfair—but with sales training  you can overcome the roadblocks! As we saw recently, the economic downturn in the USA caused people to become more resistant, selective and fearful about how they spend their money. You will only overcome this roadblock on your path to massive success when the perceived value of your product or service is greater than the value of their money. I’m sure you’ve heard the term ‘budget’ used almost every time you present a price. Don’t buy into this objection and know that when you have a price objection you really have an objection to value. Those salespeople and companies who do the best job of building and justifying the value proposition will close the most sales and dominate their markets. What do you need to do to overcome the budget roadblock? 1. Understand Value Over Price Look, whether it costs $8 or $8,000, you and your people must do a superior job of demonstrating that the value, regardless of your product or service, exceeds the value of your client’s money. If you’re selling a $30 book, don’t do a $30 presentation; it won’t get the job done. Your job is to build value in excess of the price so instead you give a $300 presentation for that $30 book—10X it! This might mean assuring your prospect the book is easy to read and that the information is easy to implement. Tell them that the book will be used over and over through the years to solve problems and make money for them. Build the value of your product or service to exceed the value of the customer’s money—so much so that they want to give you more money than they originally set their mind to. Let’s say you are in the roof repair business and you charge $8,000. That price might be hard for a consumer to part with, especially if they don’t understand and see the value of the repairs to the roof. What is the value of peace of mind? What is the value to customers knowing that they and their family will be protected from the storms that are coming? Show them the value of avoiding damage to floors, furniture, walls (things not covered by insurance) and protecting their investments within their home. This is the kind of presentation that it takes to build value in a way that exceeds all objections your client may have about the cost. 2. Stop Lowering Prices You must eliminate lowering your price as a way to build value and stop confusing value with a lower price. Don’t just keep this to yourself instill this belief in your people. You’re not Wal-Mart, so don’t try the ‘lower price formula’ or you’ll find yourself in a grave. Lowering your price may work temporarily, but it’s not a successful formula for growing profits. During the economic contraction, the volume of sales went down, and it will go down again. Combine that with lower profits and you’re inviting disaster. A lower price is only a solution for those who cannot build value. Daily sales training and tips will get you massive results and allow you to dominate your industry. 3. Handle Objections as Complaints When a customer gives a price objection you must handle it as a complaint, not as a rejection. You are going to hear about the ‘tight budget’ or other price objections, but, “the price is too high,” really means, “I think I’m better off with my money than the product you are offering.” 4. Believe People are Spending Don’t believe the media and the politicians who are telling you people aren’t spending money. Despite all of the bad news, it’s critical that you and your people don’t buy into it. Commerce and spending are deeply instilled into the American psyche. Not even the nastiest recession can stop the propensity to purchase. Whether it’s the remodeling of a house, a new car, a watch, or the roof repair proposition, if it’s alluring enough, the buyer will spend the money. There is more cash than ever to spend right now on the planet, don’t believe that people aren’t spending it somewhere. Commit to your value proposition, don’t use a lower price as a solution, never treat price objection as anything more than a complaint, and eliminate the self-defeating thought that people aren’t spending anymore. Remember, when the value of your product or idea exceeds the value of their money, you’ll get the sale. You get to choose how to create massive success. In the comments below tell me some roadblocks you've recently overcome to reach your full potential. Be great, nothing else pays…much, GC

4 Responses

Jay G
Jay G

November 01, 2016

Agreed. This is a frustrating situation. Idealy the difference maker should be you. However, this is very difficult to do. For example:

say i was selling a $1000 computer and lets say Beyonce was selling the EXACT same computer for the same price.i will will most likely lose the sale to Beyonce because of who she is, how she looks, her fame, reputation etc. people would much rather go see beyonce vs. me and heck they might even pay more for that same computer because well, Hey, its beyonce!

My only hope would be to really slash my price and unfortunatly lose profit or hope and pray that Beyonce really messes up her sales process or doesnt show up.

The point is, in a comodity market, you have to be the Beyonce of your space, the celebrity so that people think of you first regardless of price. but again this can be very difficult and may take many years to accomplish. Usually people or companies that dont have years will hire marketing firms for this or spend lots of time and money with grass roots marketing or advertising.

Ellie
Ellie

November 01, 2016

@Grant Cardone – How do you stop lowering the price in a commodity market where the only real difference is price?

marc cutler
marc cutler

November 01, 2016

very true Grant, we need to out create the “economy” And be the source of our reality! without being dependent on the government to provide it for us!

Miguel Fernandes
Miguel Fernandes

November 01, 2016

Show up, do more with a give give give mentality and you will see that people will appreciate what you do for them and will buy more from you even if it is a bit higher.
My company only sells commodities to our old customers because they don’t care about price difference in those products. If you have other products then commodities you should try to enter with those high tech or no-commodities products first.

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