selling a price increase

Ok, so your company has to impose a price increase.

Every salesperson, no matter how experienced shivers & shakes of the thought of having to advise their Customers.

Nothing is worse than hearing a response of “We will just have to take our business elsewhere”

First, it is important for salespeople to buy in to your company’s need to successfully introduce an increase, for your future as well as every member of the team.

Here is the thing - no company can survive without making a fair profit.

Of course, it can only do so by supplying a quality product & supporting service at a competitive, but realistic price.

So the key to any price increase conversation is to emphasize that such an increase will ensure continuation of product quality & service excellence, to “you, our valued Customer”.

Before you even start increase conversations with your Customer, think on these things

1. How much would it cost your Customer to move to another supplier?

2. Which competitor would they most likely seek out?

3. What is that competitor’s strengths & weaknesses?

4. What is in your (besides you!) armoury that makes you superior to the competitor?

5. Would this competitor hold a better price for a short time or for an ongoing period?

6. Could there be another underlying reason for a Customer to consider leaving you?

7. Is the Customer likely to switch back to you when the competitor moves up their pricing?

8. What strategy would best suit each Customer in announcing your increase?

Summary

A fact of life is that price increases are common & acceptable as long as they are carefully thought through & presented in a manner that that they cannot be perceived as merely a way to increase profits at the expense of the loyal Customer.                                                                            

Price increases are an inevitable part of business & salespeople cannot & should not shy away from facing up to their Customers with confidence & conviction in introducing them.

Your Customer will welcome & appreciate your honesty in presenting a genuine case which will only serve to “increase” your standing with them.

 Happy selling!

Richard

https://www.bizgro.co.za/