What's Your Budget - The Bob Bly's Approach

[Jag82]

"What's your budget?"

I think this has been debated quite a
lot recently.

I've been a service provider as well as a
client before.

So I can empathize with both sides
of the fence.

In my offline experience, I know of many
prospects who get very turned off when
someone immediately asks them what
their budget is right off the bat.

It makes them feel that the service
provider is only interested in 1 thing
and 1 thing only - getting their money.

In fact just the other day an insurance
agent approached me. And the first
thing he asked was - you guess it -
what's my bloody budget.

Nothing about my investment goals
and risk appetite. He didn't even bother
to establish a rapport with me.

Stone-cold approach.

Needless to say, he did not get my business.


Such situations can be rather tricky.

The truth is, as service providers, we do need
to know the client's expectation as well as their
budget.

That's crucial.
So everyone's time will not be wasted.


Happened that I came across an email from Bob Bly
addressing this very same same issue.

I think this is very timely and
will be pretty helpful to you folks.

He gave 3 scenarios and 3 solutions.

And I'm printing this out to see if you agree with this:


"There are certain times in selling where neither you nor the
prospect knows exactly what to say next -- or even who should say
it.

Here are 3 of those situations ... and one good way to handle
each:

>> Situation 1: You need to quote a price and have no idea of
the prospect's budget.

Don't come right out and say, "What's your budget?"

Doing so is a turn-off to many buyers.

Instead say: "Do you have a budget for acquiring this
product/getting this project done?"

If they say "yes," then ask: "Would you mind sharing what
that budget is with me?"

If they say "no," then ask: "Do you at least have a dollar
figure in your mind of what you'd like it to cost?"

>> Situation 2: You quote your price and the prospect gives no
reaction.

Solution: You say, "How does that sound to you - good, bad,
or terrible?"

If they say "good" you can proceed to close the sale.

If they say "bad" or "terrible," ask why and then
overcome the objection.

>> Situation 3: You've finished your sales presentation and
there is an awkward silence.

Solution: Ask the prospect, "What do you want to happen
next?"

They will tell you what they want you to do next - and then you
do it.


Your thoughts?
Jag

[Paul Hooper-Kelly]

Hi Jag 82,

This is excellent. Thanks

It also occurs to me it's a perfect demonstration for anyone who doubts that long sales letters outsell short ones.

You see, here we have a "live" face to face selling situation, where the salesman can ask the prospects questions, to discover what they're thinking. Then he can adjust the pitch accordingly.

But, when you write a sales letter, it's a one-sided conversation - no feedback.

So what do you do?

You must answer every possible question (also known as "objections") that could be on the mind of the prospect and so stopping them from buying.

These include:

* "Why should I believe you?"

* "Okay, so this might work for all those folks waxing lyrical in your testimonials - but how do I know it will work for ME?"

* "I can't afford that!"

* "What if it doesn't work the way you say?"

Et cetera.

So, by the time you've dealt properly with all these unspoken objections, the letter will naturally have become a long one. It's not something copywriters deliberately set out to do - it just pans out that way, if you do a thorough job.

So that's why long outsells short. Not because of the physical length, as such, but because you've filled in all the cracks in the presentation, where the sale could slip away.

Warmest regards,

Paul

[MikeHumphreys]

There was thread in the main forum which raged on for awhile about asking prospects what their budget is.

I ask prospects their budget most of the time because it will dictate whether I refer them to a less-priced copywriter or take the time to work up a project quote for them. Either way, they get great copy... it's just a question of me trying to avoid burning up time talking to people who can't afford my fees... I don't want to waste their time talking to me either if it's not going to be a good match.

I ask them their budget because depending on the size of the project, maybe spreading the work and payments over more than one month could be an option.

When it was 1-2 quote requests per week, it wasn't as big of a deal to work up a quote. But the more establish I become in this field, the more quote requests I get -- some by private forum messsages instead of my site's contact form that has a budget range question built in.

I write both offline and online marketing... sometimes both for a client's project.

There are some weeks I could burn 8-10 hours just giving out unique project quotes. A good number of those prospective clients have smaller budgets for the work they want done than I'd quote -- even if I didn't know what the budget might be.

And like it or not, my clients aren't paying me to work up quotes for everyone who asks for one.

My 3 cents,

Mike

[Jag82]

Originally Posted by MikeHumphreys

There are some weeks I could burn 8-10 hours just giving out unique project quotes. A good number of those prospective clients have smaller budgets for the work they want done than I'd quote -- even if I didn't know what the budget might be.

I know what you mean Mike.

Doing quotes can be very time consuming,
but sometimes, it's unavoidable.

From a service provider's perspective,
knowing the client's budget is important.

What I wanted to highlight is the approach.

To ask in a way that doesn't offend
and let the client understand that
you know what you are doing.

I thought the Bob Bly's way is pretty
good. That's why I'm posting it here.

Cheers,
Jag

[Mr. Enthusiastic]

"I understand you want this, that, and the other, in such and such a timeframe. We have several approaches. If the budget is extremely tight, for $a you could do this but it wouldn't include that. You'd also need to come back to the other later. On the more expensive side, for $b we could include this, that, and the other. In order to make realistic decisions, what kind of budget are we looking at here?"

(For offline marketing for a local business, $a might be $100 and $b might be $1,000. Adjust appropriately for your own business and target market.)

Chris

[5Tool]

Great post. Bob Bly's got it right.

The best way to work if the client's budget doesn't fit your price is not to lower your price, but offer the client a smaller piece of your offering.

It's been documented that many clients who can't afford a big budget offering but start smaller will eventually buy the whole enchilada.

[Sam Mlambo]

Originally Posted by 5Tool

Great post. Bob Bly's got it right.

The best way to work if the client's budget doesn't fit your price is not to lower your price, but offer the client a smaller piece of your offering.

It's been documented that many clients who can't afford a big budget offering but start smaller will eventually buy the whole enchilada.

Great thread. I like Bob Blys approaches as well. And you're right 5tool... If they can't afford your big budget offering then start them off at an affordable part of your sales funnel. Either that or refer them to someone who can work with their budget like Mike suggests.

- Sam

[DougHughes]

Thanks for the post Jag82. Bob's approach sounds good.

I'm with Mike on this one. I don't have a problem asking clients about their budget. I need that information to make sure we're on the same page.

I am comfortable educating clients on how I can help them. I am straight with clients and I like the same from them. I anticipate questions about cost/value etc...and am happy to overcome objections as long as we are on the same page.

[GetMoreTraffic]

It's about getting the right balance. Clearly a copywriter should have an idea of what their fair rate for a job is. But then again, there is no point in going to great lengths to research a campaign and create a proposal...only to find that the client's budget is fifty bucks and a promise. And there a lot of those out there...

[Rezbi]

When I wan in I.T. I used to get people asking me to do jobs for them.

One of the first things they asked me was how much it would cost.

Whatever it was they were asking for (usually to make or set up equipment), the first thing I asked was they wanted to achieve.

Once I knew that, I explained to them what the job entailed, what they needed (and what they didn't need, if they were going over the top) and then give them a quote.

That way they could make up their minds whether or not to go ahead.

[Jag82]

Originally Posted by DougHughes

Thanks for the post Jag82. Bob's approach sounds good.

I'm with Mike on this one. I don't have a problem asking clients about their budget. I need that information to make sure we're on the same page.

I am comfortable educating clients on how I can help them. I am straight with clients and I like the same from them. I anticipate questions about cost/value etc...and am happy to overcome objections as long as we are on the same page.

I agree that asking for budget is important.

In fact, I've been burnt before...just because I didn't
ask for a budget and gave a quote that is way out of it.

Lesson learnt.

That said, a balance must be struck.

Many clients will also ask you for a quote.
And if they ask you what's your charges
before you can even ask their budget, you have
to at least give a rough estimation.

So doing your homework before hand is critical.

Now I learnt to prepare a figure in mind first.

And then I say that my charges starts from $x dollar
onwards. And depending on the components involve,
additional charges will be thrown in.

It's also important to emphasize that there is
room for negotiation. That you can be flexible if
their budget is not very way off what you are
expecting.

I think the important thing is to make the client
feel that what you are offering will represent
a higher value as compared to what they will you.

As Eben Pagan said - can you give me a dollar in
return for the $10 worth of service I can give you?

Thanks guys for all your input. Love 'em!

Jag

[writeright]

Wow! That's a nice piece. Appreciate it. Cheers.

[Hugh Thyer]

It depends what you're going to do if they say a figure that's too low, or say NO to your price.

For me, my prices are fixed. Sure I can negotiate a little, especially if I see long term prospects with the client but asking them for the price sets their low price as the starting point for negotiating.

This is a big no-no.

Don't ask them if the price is OK, or if they're happy. That's simply asking for a new starting point, again much lower.

Focus on how you can give value above and beyond the quoted price. The price is irrelevant. It's the value you give that's important.

When you give them the price, especially if its one on one, say nothing. He who speaks first...loses.

[WarForNom]

Originally Posted by MikeHumphreys

...

I ask prospects their budget most of the time because it will dictate whether I refer them to a less-priced copywriter or take the time to work up a project quote for them. Either way, they get great copy...

Mike

I couldn't help picturing this thought balloon over your prospect's head:

"Ok. So I can get great copy from you or I can get great copy from this guy you know who charges less. Really glad you stopped by today."

Let's hope that she doesn't know she will get great copy either way. Eh?
; )

[MikeHumphreys]

Originally Posted by WarForNom

I couldn't help picturing this thought balloon over your prospect's head:

"Ok. So I can get great copy from you or I can get great copy from this guy you know who charges less. Really glad you stopped by today."

Let's hope that she doesn't know she will get great copy either way. Eh?
; )

Four counter points.

First of all the prospects contact me... I don't "stop by" as you put it. If you market and network correctly as a copywriter, then prospective clients seek you out. As you build a strong track record of profitable campaigns for your clients, your professional reputation also grows and more prospective clients seek you out.

Second, I make the recommendation for prospective clients who can't afford my fees because I want to see them still have a successful project. Pointing them to a skilled copywriter, instead of a cheap $50 hack, makes every copywriter in the profession look good because the client doesn't get a steaming pile of poo that bombs on launch day and a really bad opinion about copywriters as a collective bunch.

Believe me when I say that people remember that you pointed them in the right direction when they needed help.

Thrid, when you hire a copywriter you aren't just getting their writing skills. You get their expertise... expertise in areas like marketing, outsource help (i.e. top graphic designers, programmers, V.A.s, etc.), product launches. If your product is in a niche that they have written copy for before, then they already familiar with your niche which helps a lot.

Finally, if you're setting up a product launch with a dozen major affiliates promoting for you... hundreds of thousands of targeted prospects hitting your site on launch day... then do you want the cheapest copywriter or the copywriter most likely to deliver a highly profitable launch day?

Copywriting is like any other field: the copywriters who have the best track records of delivering hits for their clients charge (and consistently get) higher fees.

Take care,

Mike

[Paul Hancox]

Hey Jag

One simple solution to this is always to explain the reason WHY you're asking a question.

Mike's situation is perfect... why not explain precisely that to your clients?

For example, translating what Mike said, you could ask it this way:

"I may not be able to take on your project myself, but I could point you in the right direction, as I have a number of colleagues who might be more appropriate for your budget. Roughly what sort of budget did you have in mind for this?"

[WarForNom]

Yikes, Mike.

Hopefully some of those people appreciate a sense of humor, too, the lack of which is often read as insecurity.

Sorry you took my post as an attack. It wasn't one.

All the best.