In part one of this post, I was discussing prospect budgets as more of a range instead of a number.
We went over the Comfort Zone and Discomfort Zone, as well as my friend Molly who likes to find all the exceptions in life.
Now, we move into two danger zones you really want to avoid with your prospects
An ocean apart
Check out our revised diagram below. Remember that in part 1 of this article, the comfort range was roughly $6K to $10K.
This zone is a danger zone because it would be like you showed your prospect an absolute killer bathroom at $18K
While this is clearly an amazing bathroom, you would be so far outside of the comfort zone for your prospect that they probably just think you’re dishonest. You’ll most likely lose all trust, all respect and the prospect will bail. In our industry, this happens too many times to count. Designers get “inspired” who fail to ask questions, deliver an outstanding overkill-of-a-solution and the prospect gets suspicious.
When you are an ocean apart with your prospects you will lose a majority of the time. It is more often than not an unrecoverable situation.
The questionable zone
This is an especially problematic area for salespeople in the kitchen industry. In an effort to win the deal, the price is invariably lowered below the prospect’s comfort zone.
The challenges when positioning your solutions in this zone are numerous. First, it can raise more questions and actually prevent prospects from closing. Remember, kitchens are a high trust sale. That means becoming a trusted advisor is crucial. If you move into the questionable zone too far, you’re integrity starts being questioned. If discounts are too large or too numerous, prospects can smell blood in the water and become incredibly price sensitive. T
his zone has the strong tendency to raise more questions with your prospects than anything else. Think about buying a car: it is largely a fear-based transaction. Most people are just waiting to get ripped off. Kitchens is not that bad, but there is an element of fear. The questionable zone enhances that fear so tread carefully.
Summary
Getting your brain around the idea that budgets are wiggly gives you a huge leg up. In a market where transactions are still few and far between, discovering your prospect’s budget zones (i.e. ranges) will help you avoid sticky situations later in your sales process. Try to hone in on the transition point from comfort to discomfort with your prospects, and then position your solution slightly above their comfort range with solid rationale that resonates with why your prospects are buying.
You’ll find that price shopping diminishes and the value of what you are proposing is enhanced.
By the way, my friend Molly says she sold 4 deals yesterday in the ocean apart zone and told me to tell all of you that prospects only shop on price. Go figure.
