The Budget Provides a Target
One of the “go to” objections (excuses) for not being able to buy is “It’s not in the budget.” We’ve all heard it, rolled our eyes and looked for a different company to pursue. But is this a fair objection and can we overcome it?
On the surface, the person offering this objection might be telling the truth; however, is it the complete truth? (There is a difference, which is why both are asked prior to taking the witness stand.) Too often, salespeople accept this “truth” as self-evident and the final word, without challenging its validity.
For example, couldn’t the salesperson simply ask, “Did anything this year get bought that wasn’t in the budget?” Embarrassed, the person will likely answer, “Yes, but . . .” Another possible challenge might revolve around a compelling business case. If we reflect on our own lives, how many times have we bought major items that we hadn't planned on buying? The short answer is many times — for example, your roof is leaking; just because you didn't budget for a new roof, do you not not get the new roof?
Companies often buy software that they need when the business case supports that purchase over other possible purchases that lack a compelling business case. The budget is merely a list of the expenditures that received early support (placeholder) with some level of business case to support them. The budget becomes a "wish list" of items at a given point of time. If, however, a situation appears that requires a solution that has a business case superior to pre-existing budget items, the unexpected but newly determined important item gets bought.
In the end, the "It's not in the budget" objection, instead of discouraging the salesperson, should do just the opposite.
Instead of being disappointed and looking to pursue other companies, the salesperson should try to inspect the budget for easily replaceable budgeted dollars. The salesperson should work to solidify his/her business case and compare it to the business cases for already budgeted projects/purchases. The odds are very strong that if your business case for an unbudgeted project is strong enough, it will replace less compelling projects. The budget provides a target for our business case and we should take careful aim at it.
If your SaaS sales team struggles with overcoming objections, such as "it's not in the budget", I encourage you to consider Pipeline Grader (and its business case method) to get out of this rut. Integrated with Virtual Dave, it gets you attention that finds the money. Also feel free to email dave@moicpartners.com for additional guidance.
Virtual Dave is an AI-based virtual sales support tool trained on 40 years of enterprise software sales experience, available 24/7 to enhance sales process consistency.
