Category Archives: Sales 101
Sales 101: Five Techniques for Positioning a Price Increase
Karl is a Sales Professional with McGinniss and Company, a leading supplier of raw materials to manufacturers. For 15 years, Karl has been using Sales 101 techniques to build strong relationships with clients, despite a volatile economy that has driven prices down and materials costs up.
Fortunately, the economy is improving, and McGinniss is seeing the benefits through increases in sales as high as 10% in seven of the last eight quarters. As a result, McGinniss is now in a position to implement price increases for the first time in seven years.
Karl doesn’t know what to do.
Like many Sales Professionals in the volatile economic conditions of the 21st century, Karl has never had to communicate price increases to his clients. Lacking experience in positioning a price increase, he is afraid of weakening the strong relationships that he has developed, or worse, losing clients by delivering this difficult message. However, for Karl, as for many Sales Professionals, economic growth is making price increases inevitable.
Fortunately, it is possible to maintain strong client relationships in this situation by following five techniques borrowed from Sales 101 for leading a consultative conversation about price increases:
1) Know the reason for the price increase. There are a number of reasons for increasing prices. For example:
Your costs (materials, labor, facilities, etc.) have increased. The original pricing » Continue Reading.