Thoughtful Thursdays – Worried about implementing a price increase?
One of the least favourite tasks sales representatives have to perform is to tell their customers that their prices are increasing. It is right up there with collecting overdue payments and completing sales call reports.
After all, friends wouldn’t do that to each other. What’s worse I may lose my friend and the business as well. It’s too risky and besides all that you say that people buy from people they like. They certainly won’t like me when I tell them it is going to cost them more. I have experienced and heard it all before. If you are that worried about the consequences, then it may be a case of not believing in the value that you and products and services are providing to your customer.
The fact that your customer is purchasing from you instead of your competitor demonstrates the presence of a competitive advantage. If you think about what that advantage is and quantify it you have the beginnings of a strong case. Here are a few more keys to a successful price increase implementation.
- Establish the value you bring to the table.
- Be prepared to discuss the details of your cost increases as they relate to the proposed price increase.
- Anticipate objections and have responses ready.
- Be mindful that objections are not always a reason to negotiate only price, be creative and think of other ways to add value that may help offset the increase.
- It may lead to a negotiation, know at what point you will walk away from the table.
If your company’s profitability is in jeopardy as a result of declining margins and you are not prepared to take appropriate action, you may end up losing your customers for an entirely different reason. Can you afford to be in that situation? The customer’s initial mood may not be a happy one, expect that and also expect they will agree to the increase as a result of a well researched and prepared case.
Good selling,
Richard
Have a question about sales? Contact me and I will respond.
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