Selling the Price Increase

18Influencing Price Increase Acceptance

You learned in the last chapter that nothing is more effective for compelling customers to accept price increases than approaching conversations with relaxed, assertive confidence. In this chapter you will gain insight into the next piece of the puzzle: developing effective price increase messaging.

When selling price increases, your messaging will need to flex to and be shaped around the various price increase scenarios and approaches.

Remember that there are two main types of price increase initiatives. Broad-based price increase campaigns are campaigns that impact many customers at the same time and require the entire sales and service team to engage. Targeted account-based price increases, target specific accounts at contract renewal, on reorders, or specific line items.

Within these initiatives, price increases will either be non-negotiable or negotiable. You will typically defend non-negotiable price increases while approaching negotiable price increases by either presenting or asking.

Presenting is an assumptive approach. When you present you give your customer a succinct and clear reason for the increase, tell them when it will take effect, and leverage an assumptive close. Asking is a more nuanced and collaborative method when approaching strategic and large, high-risk accounts.

The Three Drivers of Price Increase Acceptance

Since we know that customers don't like price increases, it is worthwhile to consider what motivates ...