The best way to increase your profit is by increasing your prices.
Sounds pretty straight forward, but for far too many people, the idea of raising prices is absolutely scary.
It seems the most popular way to try to increase profit has been by cutting expenses. I’m sorry to say this, but the easy stuff has already been cut. As I often point out, “You can cut your way to survival, but you can’t cut your way to prosperity.”
Below are 6 ways you can raise your prices right now.
1. Don’t ask your customers for a price increase. Tell them.
Customers of all types are experiencing price increases. The shock of hearing about a price increase is long gone, no matter what you might be thinking. Don’t give your customer an option by asking them. You tell them you’re going to be taking a price increase.
2. Start softening up your customer now for an increase you intend to take in a month or two.
By starting to talk now about a price increase you might be looking at taking, you can begin to mentally prepare them. Don’t give them absolute amounts or percents, as that can box you in. Merely start talking about it.
3. Provide your customers with an updated set of benefits customers like them have gained from buying from you.
Many times customers will find themselves with tunnel vision if they’ve been buying from you for awhile. As such, they’ve lost the sizzle from the benefits you provide. Take the time to update them. This will get them thinking and allow them to confirm once again in their mind why they like buying from you.
4. Alter your supply-chain slightly.
Many times by making just a slight change in your own supply-chain, you can create significant new value for your customer at zero cost to you. Changes could be in order lead-times or delivery schedules or any number of other things but it is always amazing at what you may not think is a big deal is actually a huge benefit to a customer.
5. Talk quality with your customer.
Engage your customer in a conversation regarding quality and, in particular, long-term quality. Your objective is for the customer to see both tactically and strategically why they appreciate working with you.
Having this type of discussion a few weeks or months ahead of a price increase will provide you with key talking points you can potentially use with the customer should they raise concerns with you when you do announce your price increase.
6. Believe 100% in your price increase.
In fact, believe the price increase should actually be significantly more than what it is. If you don’t believe 110% in your price increase, there’s no way your customer will believe in it. This is especially true when you’re sitting across from your customer telling them you’re taking a price increase. If you can’t give your customer solid eye contact when you’re having this discussion, how in the world would you expect your customer to believe you?
If you want to be part of high-profit selling, you would be wise to do what it takes to raise your price when it needs to be raised.
Copyright 2012, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.
One Response
Great ideas Mark, I appreciate your reminders on the importance of maintaining and increasing price when it’s the right way to grow the business. Confidence of your price is such a key issue!