Old School Attitude: Not enough budget

Whether you're at a dealership trying to sell a boat or a jet ski or a motorcycle, or you're a supplier dealing with a manufacturer, budget is not what it used to be.

The old-school mantra was, "I can't sell the jet ski because the customer doesn't have the money." Or maybe, "The client says they don't have budget to do this project." Those used to be relatively accurate assessments. No more.

Today if a customer is looking at a jet ski, they are most likely able to buy it, it's just they need to believe it's really worth it--that your dealership is worth it and that you as the salesperson are worth it. Otherwise, they'll leave your store and go somewhere else and they will open up their wallet if they are convinced they're getting a great value.

If you're a supplier, your customers have probably downsized, they've reduced operations, and have retooled their processes. BUT, they still need to sell their product. They have the money IF they're convinced your idea or solution will move the needle. If not, it's easier for them to stand pat and do nothing.

It's all about establishing the value. If you do, the money will follow.

Barry LaBov
LaBov & Beyond
www.labov.com
LaBov Sales Channel
PB&J Newsletter

Playing hardball in 2009

Sure it's tough out there. Companies are discounting, almost giving stuff away.

Some clients are playing hardball with suppliers--demanding discounts, concessions and throwing away whatever loyalty they had by bidding out everything.

Sounds good for clients. But...

If you're a client and your budget is reduced 40% this year...and your staff is reduced...playing hardball with your suppliers may not be the wisest decision.

That supplier, due to budget cuts and the economy, may make little to no profit on your business this year. They may have more knowledge about your product/service than some who remain on your staff, plus they bring additional insights from other businesses they deal with. You can benefit from that knowledge. It might be better in the long run to work with them and see them as a partner rather than as an expense or easily exchanged commodity.

If you eliminate them, it may be far more painful to you (the client) than the supplier.