Latest / Closing the Deal with Fexingo: Sales, Negotiation, and Revenue Conversations for Operators / The One Question That Uncovers Hidden Budget
Transcript
- Lucas: There's a question that top-performing sales reps ask early in negotiation that almost no one else uses — and when I looked at the data from Gong on how often it appears in calls that close versus calls that don't, the difference was stark. Luna: Alright, I'm hooked. What's the question? Lucas: It's this: 'What would need to be true for this to fit your budget?' Not 'What's your budget?' Not 'Can you move on price?' It reframes the entire conversation. Luna: I like that. It's cooperative instead of confrontational. But let's pause for a second — because something's been on my mind. Lucas: Sure, what? Luna: A handful of listeners have been asking how we keep this show going without ads. And the honest answer is — listener support. A small group chips in monthly at buy me a coffee dot com slash fexingo, and that literally funds making this many episodes. Lucas: Yeah. If these conversations have moved your work forward in some small way, that link is there. It's not a big ask — it's just how we stay independent and ad-free. Luna: Exactly. So now back to that question — because I want to hear the real story behind it. Lucas: Right. So I talked to a rep at a mid-market SaaS company — call it $10 million annual revenue, selling a data analytics platform for about $50,000 a year. He had a deal at $450,000 for ten seats over three years. The prospect, a regional bank, came back and said, 'We love the product, but we only have $300,000 allocated.' Luna: Classic price objection. Most reps would either drop the price or walk. Lucas: Exactly. Instead, he asked, 'What would need to be true for this to fit your $300,000?' And the prospect paused, then said, 'Well, if we could do a two-year term instead of three, we could justify it internally.' Luna: So the budget number wasn't fixed — it was the commitment length that was the real constraint. Lucas: Right. The rep recalculated: two years at $450,000 is $225,000 per year — which is under $300,000. The prospect agreed, and the deal closed at the original total contract value, just over a shorter term. The rep didn't discount at all. Luna: That's a perfect example. The question surfaced a constraint he could solve without lowering price. But does it always work? Lucas: No, and in fact, Gong's data shows that the question appears in about 12 percent of recorded sales calls. But in calls that eventually closed, it appears in 38 percent. So it's not magic — but it correlates strongly with closing. Luna: What about when it backfires? I've seen reps ask that and the prospect just says, 'Nothing. That's the budget.' Then you're stuck. Lucas: That happens. But even then, the rep has gained information. If the prospect truly cannot move, you know the objection is real, not a bluff. The alternative — just dropping price — leaves money on the table if they could have moved. Luna: So the question acts as a diagnostic. It separates the 'I can't afford it' from the 'I don't want to pay that much.' Lucas: Exactly. And there's a second layer: after the prospect answers, the best reps follow up with, 'And if we could address that, would you be in a position to move forward?' That locks in a commitment before you do any work. Luna: That's the part most reps miss. They get the constraint, but they don't get a conditional yes. Lucas: Right. So you can say, 'If I can structure a two-year term, you'll sign?' The prospect says yes, and then you both know the goal. It's not a discount conversation anymore — it's a problem-solving exercise. Luna: Let's talk about when to ask it. Early in the negotiation, or after they've pushed back? Lucas: Based on the Gong data, it works best after the prospect has stated a budget figure — not before. If you ask it too early, they don't have a stake in the number yet. But once they've said '$300,000,' that number is theirs, and they're more invested in defending it. Luna: So you want them to anchor first, then use that as the starting point. Lucas: Yes. And the phrasing matters — 'What would need to be true' is future-oriented and collaborative. Compare that to 'Why can't you pay more?' which sounds accusatory. Luna: I've also heard reps use a variation: 'Help me understand what's driving that budget number.' That's less direct but can uncover the same thing. Lucas: That's a good one too. But the 'need to be true' framing has a specific psychological effect — it invites the prospect to co-create a solution. They feel like they're part of the answer, not just a gatekeeper. Luna: Right. And once they start talking, they often reveal things they wouldn't otherwise. Like the bank in your example — the real issue was term length, not price per seat. Lucas: Exactly. In fact, the rep told me that if he had just discounted to $300,000 for three years, he would have lost $150,000 in revenue. The question saved the deal at full price. Luna: That's a massive win. And it's replicable. Any rep can learn to ask that one question. Lucas: The challenge is discipline. In the moment, when a prospect says 'We can't afford it,' the instinct is to drop price. The question forces you to pause and listen instead. Luna: So what's the one takeaway you want listeners to walk away with? Lucas: Memorize this question: 'What would need to be true for this to fit your budget?' Use it the next time you hear a budget objection. Nine times out of ten, you'll learn something you didn't know — and sometimes you'll save a six-figure deal without discounting a dollar. Luna: That's a concrete skill you can use tomorrow. I'm going to try it myself. Lucas: Let us know how it goes. And if you want to dig deeper, we'll have show notes with more examples at the usual spot.