Episode 14: Don’t Miss Out on the End of the Year Budget Funds
End-of-the-Year Funding. Is it still a thing in 2020?
Yes…for some.
Traditionally, this is the time of year when out of the blue, many customers find out that there is extra money, and if they don’t spend it by the end of the year, the money is gone. Usually almost every product line is a contender for that money.
But 2020 is no ordinary year. Will you still have a chance a those end of the year funds? I’ve been doing some digging and research on this, and the answer is YES, if:
1. You’re in an industry that has flourished during COVID. There are some!
2. You’re in an area of the country that has not been as affected RECENTLY they might still has a little end-of-the-year money that needs to be spent.
3. You sell a product that could bring some COVID relief? Examples for the hospital market could be more telemetry packs, beds, or mobile carts for patients in COVID units.
If you answered YES to either of these, it’s time to get proactive.
I can’t tell you how many times I’ve been so worried about making my yearly quota, and then out of the blue, one of my customers calls to tell me that they have some year end funds and BAM! I’m one of the highest selling reps. Again.
We all know that customers have yearly budgets, and sometimes they have extra funding.
So how can we maximize our chances that they will choose OUR products IF they have some extra money?
Know their fiscal year. This should be information you get very early during the sales process, and make sure you have some place to write this down. Not everyone operates on calendar year. Sometimes people are July – July. Sometimes they’re October – October. It would be really embarrassing to ask for end of the year funding in November, when it turns out they don’t end their until July. Keeping good notes is an essential part of sales.
Throughout the year, we have to be in front of them. Even if they said they won’t have money to spend. We need to still be checking in a lot. That way, when they DO end up with money in their lap, we’re the first ones they think of. So, keep your eyes out for articles or research that might interest them, and send it to them periodically. Check in to make sure things are going well with the products you’ve already sold them. Find a reason to check in at least every other month.
When you know that their end of year is coming up, send out an email to the customers that you know well and work with a lot, and be straight about it. Tell them sometimes customers have money to spend at the end of the year, and tell them you are ready to work quickly on quote and specs if that turns out to the be the case for them. And then follow up a few days later with a call to feel them out and see if there is anyone you should be calling to move this forward.
Come up with an end of the year savings they can take advantage of. You may not have authorization for this, but if possible, get creative. And again, be straight with them. Tell them your company is trying to close out some business, and if they can cut the PO by the end of the year, you’ll be able to offer an extra 5%. People understand this. They get Cyber Monday and Black Friday very well, so if possible, they will want to take advantage of your sale. This doesn’t make you a sleazy salesman any more than Amazon is sleazy for offering good deals on TVs at strategic times.
Make a list of customers that are a bit of a stretch. You know the ones. You’d like to work with them, but never have been able to. And do a marketing campaign. Come up with a letter you can send. Very simple. And again, be very straight with them. Something about how you’d love to have a chance to show them your products and how they might have end of the year funding and you’d like to see if they want to meet to talk about it. And this time, send it in the mail. It’s more time-consuming than email, but it’ll make you stand out. Sign the letters and follow up with a call.
Lastly, you can do the marketing campaign, but use personalized video messages. This is a new topic, and something you likely haven’t done before, but it’s extremely effective and can REALLY make you stand out. I have a podcast coming out in a few weeks with an expert on this topic, to help you get started.
With Thanksgiving coming up, we won’t have a new podcast next week, as I’m sure you’re all going to be busy, but I’ll be back the first week of December with a new one for you! I wish you all a very Happy Thanksgiving!
Links:
MMS Consulting (My Consulting company)
Brightside Speakers (My agent)
