Selling the Price Increase

29Align and Lock

Of course there are situations, especially when the price increase is large, when funny money won't do the trick and you'll need to negotiate the price increase points. In these cases, you will entertain offers and make counteroffers with the objective of negotiating an agreement with your customer in which you concede as few price increase points as possible.

Negotiation is about giving and taking. Successfully negotiated outcomes require both you and your customer to make concessions. But as the great Yogi Berra is famous for saying, “If you don't know where you are going, you might end up someplace else.” When you are negotiating with savvy customers, that someplace else is usually where you give away most of your points.

This is the key reason why you need to plan in advance of price increase negotiations. You need to know your negotiation authority, targets, and limits, and be prepared with a Give-Take Playlist.

Negotiation Map

The sales negotiation map (Figure 29.1) defines your negotiation authority, targets, and limits. The map brackets the entire negotiation and serves to keep you on track so that you achieve your objectives.

Proposal

The proposed price increase is the starting point, or anchor, in the price increase negotiation. This is what you closed for and your best-case outcome. When you believe that your customer will hold your feet to the fire and negotiate with intensity, it is wise to anchor your proposed price increase at a higher point ...