We spent our entire budget, honest!

To overcome this objection, you must first find out if the prospect is telling the truth.
There are several "hidden meaning" possibilities: We spent our whole budget may actually mean: I can't afford it E or E I can buy it elsewhere cheaper (or better) ... or E I don't want to buy from you (or your company) E or E I already have a satisfactory vendor Eor E I don't want what you've got.
The best reader answer for "my budget is used up for the year" was:
"Mr. Prospect, let me tell you about our deferred payment plan. If you sign for two years now, we can delay payments for 6 months until your next budget, and simply accelerate payments."
Other good responses included: "If my service solves your problem, is there any reason why you can't make the necessary changes to be included in your budget?" It should be noted that "no budget" is also a convenient sales dodge.
Another response: "Who would have the authority to exceed the budget? When can we set up a meeting with her?"
To find out if the prospect truly wants to buy, but actually does not have the money in the budget, here's a great method to use:
Salesperson: If the budget wasn't used, would you buy my product?
Prospect: Oh, Yes!
Salesperson: When is the next budget meeting?
Prospect: July
(NOTE: You must now ask the following questions and write down the answers).
Salesperson: What type of proposal do I need to submit? Date due? Can you get me a sample of a previously submitted proposal? Are there others I should submit it to? Will you give me a letter of endorsement? (A letter of endorsement by a manager attached to the budget proposal can be the deciding factor). Can I present my proposal in person at the meeting so that any questions can be answered? (Any hesitancy on the part of the prospect to answer these questions probably means budget is not the true or only objection).
You might still be able to get a sale or partial sale this year. Immediately begin to ask about his present situation E Is there anyone else who might be able to rearrange this year's budget to find some money. Is there any money left in approved items that is unspent? Can we categorize this purchase in another heading that has money left to spend (office equipment, promotion, dues and subscriptions, publicity, advertising). A bit more pushy approach is, "Are you sure you can get it approved?" Prospect says "Yes." You say, "Buy now, I'll bill you now, but it's due after the budget approval."
"No money in the budget" is among the most difficult objections, because you don't know if it's the truth, and if it is, there's serious follow-up that must be done. If you submit a proposal for budget approval it must be concise, without error, all terms and conditions spelled out, and on time.
Next week: Using the puppy dog close to improve sales.