The Question: Got Moolah? Will Deal.

I wasn't going to write about this, but after reading Cedric's post, I figured, why the hell not...

After nearly 5 years of negotiating deals and closing sales, one would think I'd get the hang of the whole sales thing much sooner than later.

Apparently not.
Just like today.

Long story short, the deal was 95% done when the plug got pulled. Personally, I think the deal failed because the prospect was either too cheap to invest on quality work, or they've not been educated enough to know a good deal when it bites him in the behind.

Disappointed? Yes.
Frustrated? Somewhat.
Exasperated? You bet.

Looking back though, it teaches me one particular lesson. That is, regardless of how tactless it may seem, asking this one question will cut through a lot of BS that goes around in negotiations and deal-making, especially among cheapskate clients. (And you know there are a lot of them out there.)

That question is: "How much are you willing to spend for this project?"
Or, if you want to put it a bit more tactfully,
"What's the budget like?" or "What kind of budget has been allotted to the project?"

Aside from getting an idea of how much money they're willing to spend, how the question is answered tells you three things:

(1) If the answer comes readily, chances are the client is serious in getting a deal done - and soon.You work within that range, things should fare better than worse.

(2) If the prospect answers with a fairly precise amount, e.g. 250,000, he is also most likely to be more worth your time and effort as opposed to the guy who vaguely answers with "somewhere around 200 or so". You ultimately earn more serving a burget from the guy who asks for one than from the fellow who has no effing idea why he's in the diner in the first place.

(3) Also, getting a ready answer may mean the client has done their homework; they've either canvassed with other suppliers or nailed the budget specifically to that amount. And again, it's so much easier to work with someone who knows what they want (and that includes how much they want it for).

Some people may say that to ask this question is to be rude and that you're only in this for the money. But of course we're in it for the money!
What do they think we bust our nuts for? Charity?!
(Some of you may be asking "What if they refuse to answer that question?" My entry on that will come around soon. I hope.)

Naturally, you don't point blank tell them that. Tact has to come into play and I suppose the best way is to point out to them that by knowing their budget range, you'll be able to make a better deal in faster time.

I know there will be clients who may intentionally answer with a low amount, hoping you quote low so they can save a lot off their budget. To this, I say, it depends on how low they say the budget is. If it's moderately below (say, 20 to 30% lower) the going rate, you can allow for a bit of an upwards tug to your quote. But if it's RIDICULOUSLY low (50-90% lower), they either have no clue as to how much what they want really costs, to which it is your job to educate them; or they're the type of client that will suck your bones dry and then find some way to stiff you. I don't need to tell you that your only option for the latter is to get away from them at the soonest possible opportunity.

Truth be told, I write this more to myself than to anyone else. But I suppose, if you pick up something from this, then I'm glad you did. Hopefully, with less second guessing, and with more confidence in your costs and margins, perhaps the next deals get closed better.

We can always hope.