It's Oh So Nice To Raise Your Price: Jeb Blount Shares How
Aug 07, 2022
Professional Sales Tips you'll learn today on The Sales Podcast...
- The only book on how to get higher prices from your clients
- Clients will accept your price increase but not be happy
- If the price increase is small just do it and defend it
- You need scripts to articulate why the price increase
- Explain why it's fair
- Your customer needs to feel like they are getting good value
Related episodes and posts
- Jeb Blount Shares How To Use MLP to Negotiate Better Sales
- Get On The Sales Gravy Train With Jeb Blount
- Price increases are the fastest way to increase your bottom line...if you can keep your customers
- Eight different narratives for explaining the price increase
- Your job is to expand and retain your business as a salesperson
- Salespeople are great at discounting and terrible at discussing price increases
- Mature companies may not discount as much
- What is the risk of losing customer?
- A lot of companies do have CPI provisions for annual price increases
- It makes sense to slowly and regularly raise prices
- Salespeople are afraid to raise prices
- Companies are afraid of raising the prices and losing the client.
- They don't want to "awaken the sleeping giant!"
- Red/Yellow/Green your customers.
- Green is a solid, long-term contract
- Yellow is borderline
- Red is a potentially lost client if you irritate them
- If a customer says they won't accept the price increase I can learn how I'm letting them down.
- Most of your customers are in the danger zone.
- Clean up your pipeline and accounts.
- Clients get amnesia when the scheduled price increase kicks in that they agreed to years ago.
- Have tough conversations early.
- Have guts and confidence.
- Get your message in order.
Salespeople are great at discounting and terrible at discussing price increases."
- Pull out your calculator and show them the value.
- Your price increase comes right out of the back pocket of small business owners.
- It's your job as a salesperson to stand your ground and make that sale.
- Most salespeople just walk away because they know they haven't earned the price increase.
- Jeb uses a fit matrix to scatter diagram his customers.
- Easy/hard to work with, high/low profit.
- He'll ask for a 100% price increase on the low-profit, hard-to-work-with clients.
- What's surprising is how few of your customers go away.
- Customers hate being fired.
- You need to know where you fit in the life of your customers.
- Ideally you are adding more value than what you charge.
- You need to be tooting your own horn.
- You need to stay in front of your customers.
You lose because you take your customers for granted."
- What is your messaging and method to stay in front of your customers?
- Do quarterly business reviews, especially if you're a small cog in their system.
- Get feedback from the customer so you know how you're doing.
- Pick up the phone and have a conversation.
- Do that maybe once a month.
- Just touch base to stay top of mind.
- You lose because you take your customers for granted.
- Just manage the account.
Sales Growth Tools Mentioned In The Sales Podcast
- Get his book, "Selling the Price Increase: The Ultimate B2B Field Guide for Raising Prices Without Losing Customers"