One Fast Step to a Higher Closing Ratio

As a signage professional, you know your high-quality products offer a great deal of value to your clients. You also know that your prices are not always the lowest. So, given that your quoted price will probably not be the lowest, how can you avoid wasting time on proposals with “cheapie” clients who select their vendors based on price alone? Here is an idea that may help. Get a project budget figure early in the process – and prior to developing your formal proposal. That keeps you from wasting valuable time preparing signage quotations that have little chance of closing. Here are 3 quick tips to help you get a budget number. BALLPARK YOUR NUMBER AND OBSERVE THE REACTION Here is the first situation. You’ve reached the point in the client conversation where you are starting to feel comfortable with the project and your ability to handle it. So what is the first prospective method to tactfully ask your client to state a budget number? This is it: take the lead with stating a number rather than waiting for your client to state theirs. Say something like: “Based on what I’ve seen (and/or heard) about your project, here is a ballpark number of what we should be thinking.” State your number and listen for the client’s reaction. That will clue you in to their prospective budget (or lack thereof.) They may even state it specifically at that point. REQUEST THEIR BUDGET NUMBER DIRECTLY Second, here is a no-nonsense approach that gets down to brass tacks. Say this to your client: “OK, we’ve talked about the project basics, and I’m comfortable my company can do the work. Now let’s talk about the cost. What amount do you have to spend?” This is an excellent question since it makes the assumption that your client already has a budget, and now you fully expect to receive it since you have spent time discussing the project details. USE SOME HUMOR TO LIGHTEN THE SITUATION Third, this budget question lead-in statement can help. It lightens up the awkward topic of money. “Now it is time for my favorite part of the conversation, and I’m sure it is yours too. What is your budget for this project?” The humorous lead-in lightens up the request and may help you get a specific figure. Here is one final observation – the more evasive and non-committal a client becomes when you ask for a budget number, the more likely it is they are a “tire kicker” who is not interested in overall project value. They’re only looking for the lowest price. So what quick step can increase your closing ratio? Insist on a stated budget prior to developing your proposal. Do not bid unless you know the client has enough of a budget for their preferred sign – if they refuse to provide you a number, skip it. Your closing ratio will increase because you won’t waste time on proposals that have almost no chance of closing.