Why aren’t your deals closing at the listed price?

Salespeople often hear team leaders asking them why they have so much trouble getting the list price when they close deals. It’s a fair question—one that is usually preceded, on our side, by frustrations that have become both familiar and predictable during interactions with prospective buyers. For instance:

• Prospects tell us outright that our price is just too high.
• They ask what kind of discount they can expect.
• They say, “This looks great, but not this quarter—maybe next year.”
• Or, in more complex and sophisticated buying environments, they say things like, “This just isn’t in our budget process.”

As frustrating as these responses may be, they are signals that our process needs help. They are not signals that the prospective buyer is somehow out to get us or is doing anything unacceptable. These responses are breadcrumbs waiting for us to follow them all the way to the root cause of the problem we’re experiencing – the same problem our team leader wants us to solve, namely, not getting our full price. If we want to reduce how often we hear these kinds of responses from buyers, we need two things:

• Honesty with ourselves.
• And a clear strategy for addressing, early on, the underlying issue that gives rise to these roadblocks—before they become deal-ending “surprises” that are actually no surprise at all. 

THE REAL REASON

Let’s take on the self-honesty issue first. We need to be brave enough to pose, and answer, an uncomfortable question: Is the real reason we’re consistently encountering these issues that we ourselves are uncomfortable asking budget questions?

Deep down, do we believe it’s impolite—or even unprofessional—to ask a prospect whether they have money available, or whether they’re willing to share budget information with us?

If we want to be consistently successful in sales, we must overcome that discomfort. Often, that means changing a process that, let’s face it, isn’t doing us or the prospective buyer any favors. Specifically, we want to change the process that says we should present our solution first … then find out about whether money is available for it after that. This process is dysfunctional.

Meaning it doesn’t work. We need a workable process and a workable strategy.

A WORKABLE STRATEGY

The appropriate time to discuss a prospect’s budget and financial parameters is after they’ve clearly articulated their personal and emotional reasons for change to us … and before we deliver any formal recommendation, proposal, or presentation.

That means we raise the issue of price proactively, but only after we’ve uncovered what Sandler calls “Pain,” namely:

• Why the status quo is no longer acceptable
• Why replacing the incumbent/changing the status quo matters on an emotional level
• What it’s costing the organization to delay or avoid making a change

Once those issues are understood and acknowledged by the prospect, we can confidently transition into the investment conversation. At that point, there are three areas for us to discuss: time, energy, and money.

Time is just as precious a resource as cash, and arguably far more precious. So we will want to ask about it directly. If this decision requires two, three, or four face-to-face meetings, are they willing to commit to that process? Or do they default to asking for an email quote? A reluctance to invest time in the solution-development process often signals hesitation or a lack of urgency.

Energy, attention, and human resources, too, are investments. If they decide to move forward, are they willing to commit the people, resources, and the internal attention required to implement the solution within the agreed timeframe? Successful outcomes require more than approval—they require participation.

Last but not least: Do they have a budget in place? Is the project funded? What level of investment were they hoping or expecting to make?

At this stage, it’s going to be important that we apply what we at Sandler call the Rule of Three Plus to uncover reality in all of these areas. In most cases, it takes three or more well-placed questions to move beyond surface-level answers and uncover the truth. Initial responses are often cautious or incomplete. Follow-up questions provide clarity.

QUESTIONS THAT HELP US IDENTIFY THE MONEY AVAILABLE TO SOLVE THE PROBLEM

Once we’ve uncovered pain, we don’t want to wait until “later” for the prospective buyer to raise the question of money. We want to raise that issue ourselves. If that means undoing years or decades of head trash, so much the better. The sooner we begin that decluttering process, the sooner we will find ourselves on the right side of conversations about pricing.

The most direct strategy for understanding a prospect’s budget situation is simply to ask. Simple, effective questions include:

• Do you have a budget set aside for this purchase?
• Is this project funded?
• Are there any budget limitations I should be aware of?

These questions typically yield a “yes” or “no.”

If the answer is yes, appropriate follow-up questions might include:

• In round numbers, would you be willing to share the amount you have in mind?
• Could you give me a ballpark range you’re working within?

Using terms like round numbers or ballpark reduces pressure and helps prospects feel more comfortable sharing information without committing to a precise figure.

If the answer is no, or if the prospect is reluctant to share budget information, you can “test the waters” using third-party stories. Reference one or two similar projects you’ve completed with other clients and disclose the investment range for those engagements. Then ask whether the prospect would be comfortable making a similar investment if they determined your solution was the best fit. For example:

“Carla, the last two projects we completed that were similar in scope to what we’re discussing came in between just over $18,000 and just under $22,000. I suspect you’d be looking at a similar investment. Would you be comfortable with something in that range?”

You can then add:

“If not, it’s probably better for us to know now—before either of us invests more time in something that won’t move forward.”

If the prospect confirms they’re comfortable with the range, a natural follow- up is:

“Where in that range do you expect your budget will fall once it’s established?”

This approach allows you to maintain transparency, respect the prospect’s position, and avoid misalignment later in the process.