How many times have we purchased something that we really wanted (vs. needed) and were compelled to justify the expenditure to our family and friends? Men buy flashy sports cars and talk about the safety features. Women buy their 100th pair of shoes and talk about how much money they saved. Teenagers insist on WiFi and unlimited texting so that they're always accessible. Let's face it. These purchases make us feel good. Even in business, there is an emotional component to buying decisions, e.g. loyalty, prestige, ego, but seldom are purchases approved without some form of financial justification.  (read more...)

According to Gartner, a project is 60% more likely to be approved with a cost justification and business case. Since most salespeople are not accountants, what can we do to help them facilitate a high-level ROI?  First, the salesperson needs to ask questions to quantify the cost of the way the prospect does business today as well as the projected improvement upon implementation of the seller's offerings.  Second, the salesperson needs to document this information and get confirmation from the prospect that the potential value of the solution is as projected. 

Many salespeople think that asking metrics questions is too intrusive or that the prospect doesn't have the answers.  If the prospect needs to cost justify an investment decision, however, they'll either share the information with the salesperson or they'll do their own cost/benefit internally.  And if the seller doesn't get involved in quantifying value, price negotiations can get real ugly, real fast.