Help - How to overcome the, "My Budget Is All Spent!" objection

[Lamontek]

I'm looking for some advice from professionals out there who have dealt with the dreaded, "My budget is all spent" objection.

Any suggestions / new ideas to overcome this response?

[PIngegneri]

The advertiser must believe in advertising or they wouldnt have a budget. They must also believe in the old addage that "advertising pays, it doesnt cost". So, thats a good thing. With that addage in mind, the smart business person would never pass up an opportunity to increase their top line and thus their bottem line with the right ad vehicle. Are they a smart business person? Get them to agree that they believe in advertising. Get them to agree that they see value in your product. Then get them to agree that they are a smart business person. They will then agree to advertising with you.

Good luck.

[Coach]

Make sure this objection is really the case. A lot of customers use this objection to get you out of their store. You might want to see if they have any co-op dollars they aren't using as well.

[db7]

Co-op dollars are a good idea.
Another approach utilizes incremental dollars.

An aggressive business will invest A&P dollars over and above the budget IF 1)the ROI can be demonstrated, 2) the business has the inventory and personnel to support the additional sales, and 3) management has the will to grow (or a problem sales can solve, like an overage of inventory.)

A "salesman" might walk away when the buyer says the budget is depleted. A "market share growth consultant", on the other hand, will converse with the buyer to analyze #s 2 and 3 above. If the company has the resourses and the will to grow (or solve the problem) is strong, you must provide the buyer with a COMPLETE proposal. This proposal must be able to demonstrate to the buyer's bosses that an acceptible portion of the profits from your advertising will pay for the ads. If you are willing to do your homework, and get to know your customer's business, you can make this happen.

As you can imagine, the closer the buyer will work WITH you, the better your presentation will work FOR you. Remember this. The buyer has an easy job telling salespeople like you that the budget is spent. It is WORK for that buyer to communicate with his bosses to convince them to spend more money. Why would anyone do more work? How about for recognition, honor, rewards, a raise, a promotion, more money? You will have to SELL the buyer on the fact that this extra work is in his/her best interests before any incremental dollar plan will work. Once the buyer is sold, he/she will help you create this proposal and they will help you sell your idea to their bosses.

For your winning proposal, you will need at least two things, numbers and an opportunity.

For numbers, you need their advertising cost from past campaigns, and you need their average sales resulting from the ads. Many salespeople aren't in the habit of discussing the financial results of advertising they sell. Believe me, the businesses you approach know (or think they know) what ads cost and how much ads generate in profits. Your customer will level with you and share this info if you ask and if he/she sees you are sincere in wanting to grow their business. With these numbers, you can show that the expected results will pay for the ads from the incremental sales revenue. They only spend new money. Their old budget isn't relevant.

For the opportunity, you must have have a well-thought-out advertising plan. Show in your proposal how your advertisng will bring the right message to the right people the right number of times. YOU MUST SHOW THE CUSTOMER how your advertising will help their business grow (or how it will solve their problem.) The "sizzle" for your proposal is always included in the opportunity. It doesn't have to be a new advertising invention either. Basic, proven advertising ideas customized to suit their needs will win over management and get you a sale. Thoroughly explain how reach, frequency and the creative aspects will bring in the incremental business. Present your proposal to the buyer with enthusiasm, emphasizing how it will enhance his/her image with thier bosses.

Bottom line: it takes work to overcome the "budget" objection. You can make the sale, if you do the work, and you help the business grow or solve a problem. Additionally, you will become a valued part of their team. You will be in position to influence their advertising for quite a while. Even if you don't get the sale with yor first try, the effert you put into the account, for their benefit, will be recognized and appreciated. Keep after the business; you will get it eventually. Good selling!

[RADIO]

A budget is something you take to Las Vegas. You expect to loose it, and not get it back. An INVESTMENT is something you get a return on. So if you invest, you get money back from your investment, right? As long as your product will get them the return you will never hear that from that customer again.

[FishWrapAutoRep]

Originally Posted by RADIO

A budget is something you take to Las Vegas. You expect to loose it, and not get it back. An INVESTMENT is something you get a return on. So if you invest, you get money back from your investment, right? As long as your product will get them the return you will never hear that from that customer again.

Don't talk about Vegas like that...

[Spartayon]

"I hate to see you lose lots of prospects just because of a set appropriation. I am not suggesting that you spend money, I'm suggesting you INVEST it. Your advertising, properly handled will pay big dividends. If $50 invested in advertising produces $5,000 in added business, you haven't spent a cent. You've just created additional business revenue by making a relatively small investment.

Also mention Co-op dollars if you haven't already"