How do you approach pricing when a client wants more than their budget allows?

I never make someone feel bad about their budget. I actually tell every customer to get three quotes before deciding on anyone, me included.

If the budget is short I just ask what matters most to them about the job. If they say good paint I'll say "couldn't agree more, good paint makes all the difference." Then we find somewhere else to pull back. Maybe part of the work waits till next season or we find a supplier that gets us the same quality for less.