“Your proposal is too expensive” ≠ “We don’t have the budget”

“Your proposal is too expensive” doesn't mean the same as “We don’t have the budget”. When account handlers treat both objections the same, it’s deadly for account profitability.

Consider how your team would likely react in either scenario. Would they respond in the same way to both? And would that mean looking for ways to cut the price and secure the sale?

Both scenarios sound like the client won’t pay what you want to charge, so the natural reaction is to find a way to charge less. This overlooks a big and potentially important difference, and the first job is to explore what each objection really signals before negotiating on price.

“Too expensive” = a value gap. Your client doubts the outcomes justify the investment. It’s more a ‘worth’ problem than a ‘wallet’ problem.

“We don’t have the budget” = a funding gap. Your client sees the value of your proposal, but faces financial constraints.

The distinction is important because the follow-up should be different.

“Too expensive” requires diagnosis, exploration and reframing:

• Validating immediate priorities and what is valuable right now

• Mapping proposal outcomes that match and miss those priorities

• Quantifying the cost of delay and risks from inaction

• Uncovering proof points needed to justify the price

• Tailoring the proposal to better meet needs

“We don’t have the budget” requires more creative thinking to protect value:

• Reallocate budgets

• Convincing a senior budget holder

• Phased delivery across budget cycles

• Split POs

• De-scoping, clearly tying reduced price to reduced outcomes

A simple diagnostic question is: “If budget were available today, would you proceed?” “No” or “not yet” suggests a value gap. “Yes” suggests a funding gap.

In either situation, the worst response is panic discounting, particularly if this means delivering the same and charging less. It’s a clear signal that the team doubts either the value of the agency’s outputs or their ability to defend the value created, and trains clients to negotiate your worth (just think of when you call to renegotiate your broadband contract – nothing screams ‘rip off’ when your provider immediately discounts on the first challenge).

Confidence sells, and if your account management team can’t articulate outcomes, trade‑offs and the why behind the price – calmly and credibly – why should your client pay what you're asking?

What patterns do you see in your team? What would need to change for them to respond differently to “too expensive” vs. “we don’t have the budget”?