I don’t have to tell you that the cost of everything is going up.
I don’t have to but I’m going to do it anyway because as gas prices hit record highs and apples run about $6 a bag and homes continue to appraise for 2-3 times their worth you will eventually have to increase your own prices. Inflation, supply shortages, and more can lead to the need for that uncomfortable conversation with your clients in which you have to inform them that the price tag has just gone up.
And even if you’re in some magical industry who hasn’t been impacted by inflation, your skills have probably improved and you definitely have more experience so therefore you have more to bring to the table.
Your value has increased, shouldn’t your price?
All that said, sales people like yourself continue to loathe having to deliver the news of a price increase to their clients and customers. Which is exactly why Jeb Blount wrote the most comprehensive guide to raising prices without losing customers, Selling the Price Increase. This week we have the privilege of having him on Women Your Mother Warned You About where he gave us a preview of what’s inside his newest field guide.
So how exactly do you deliver the news and not have them audibly scoff while walking away, leaving you to wipe your own tears with an unsigned contract?
Priming
If you’re reading this just moments before having to make that difficult phone call, best just skip to the next paragraph because Jeb’s first bit of advice is to prime your clients. If you know a price increase is on the horizon it will work in your favor to start eluding to that fact now.
Economic Fairness
No one you talk to is going to be excited about paying more money. When was the last time you pulled up to the pump and smiled because the cost per gallon had increased yet again? Yeah, I didn’t think so. However, a majority of your clients will find it hard to argue with hard facts – your cost of goods has increased and your payroll has incurred painful growth – they’re probably experiencing similar pains. It’s essentially the misery loves company argument, except in this case misery creates compassion.
Future Value Narrative
While rising costs is an okay place to start, an even better track is to express what your product or service really means to them and what that product or service is going to do for them in the future. If you’ve done your job as a sales person right this far (establishing trust, providing value, etc) this conversation won’t be as painful as you might think.
One of the most important tips Jeb has to share will be found in Chapter 7: “Triggering Resentment and Contempt” where he will help you conquer the natural inclination to procrastinate when sharing news of a price increase. Message me for details on how to get it for FREE!
