The only option that is left is to take a price increase.
One of the biggest challenges is to then ensure the sales force believes 100% in the increase.
I’m a firm believer in the premise that more price increases fail because the sales force does not believe in the price increase than nearly any other reason. What makes me the most upset over this is the fact that it’s totally preventable with proper preparation.
The best way to get ready for your 2012 price increase?
The key is for each member of the sales team to believe in the price increase. This includes not just the salespeople on the street, but also sales management and everyone else.
Recently, I was talking to a salesperson who was struggling with the price increase. Upon digging in more, what I found was a sales manager who had been bragging to the sales team how the increase was stupid and unwarranted. With an attitude like that coming from a sales manager, how would any salesperson not have serious doubts?
The time to start preparing for your price increase is right now, regardless of the date you plan to announce the increase. Taking the time now to begin preparing your strategy will pay major rewards down the road.
One thing each member of the sales team can never forget is any failure to achieve 100% success with the price increase will translate into a corresponding reduction in profit.
With any price increase, remember one thing — it’s always dollar for dollar. For each dollar in additional revenue, there will be one additional dollar added to the profit column.
Below is a link to a number of articles I’ve written regarding price increases. Take a look at the articles and use them as a tool to help you prepare your strategy.