Your customer won’t notice as much as you think.
Surprisingly, most customers don’t know or remember your price as much as you realize.
If that’s the case, then why would you think rounding your price up is going to cost a lot of business? It’s not, so go ahead and do it.
Look at it this way. The additional profit you’re going to make might seem small, but it adds up quickly. If you’re in a typical industry and if by rounding your price up you increase your profit by 3%, then you could afford to lose 1 out of every 32 customers without damaging your total profit.
The probability of losing more than 1 out of 32 using this ratio is pretty slim. Sure, there are a few, but more often than not, the risk of losing more customers pales in comparison to the potential gain you will experience.
The reason more salespeople and companies don’t do this is simply out of fear of the unknown. This fear — or “unfounded fear” as I like to call it — is hurting the top-line and the bottom-line.
If you’re in sales, get over it and get going. You can’t argue facts, so put your ducks in a row and determine if the fear is simply that or if it is a fact.
The real upside to rounding up your pricing is the confidence you’ll gain as a sales force.
Price increases or any adjustment of any type that moves a price higher is always subject to pushback from the sales force. When the sales force can pull off something as easy as a rounding increase, then it begins to change their perception about every other increase.
Will it cause a 180 degree change? No, but it will begin to challenge the thinking of salespeople.
Copyright 2013, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.