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10 Rules of Pricing Plus 7 More You Need to Know

May 6, 2015

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Yes, there are some rules of pricing, particularly if you are taking a price increase.

You know you have to increase prices with a customer. If you do it correctly, you’ll protect your profit and continue to provide the customer the value they want.

Here are 9 things you should NEVER do…

  1. Never “ask” for a price increase. Why would any customer offer to pay more?
  2. Never blind-side your customer with a new price.
  3. Never hide behind a price increase by letting it be communicated in an invoice, letter or email.
  4. Never try to justify a price increase using only the cost of raw materials.
  5. Never make a commitment such as, “This will be the only price increase for the next several years.”
  6. Never mask your price as being part of an industry trend.
  7. Never lose your ground by not knowing in advance what your “walk away” point is.
  8. Never allow the price increase discussion to become an emotional issue.
  9. Never call your price increase a “surcharge” of any type.

And here are 8 things you should ALWAYS do…

  1. Always “tell” the customer what the new price increase is.
  2. Always support the price increase based on the “value equation” of what the customer is receiving.
  3. Always provide lead-time to the customer.
  4. Always tie the price increase to the continued technical, quality and confidence of what you provide.
  5. Always respond to a pricing objection you’ve heard twice with a question about a critical need the customer has. Remember this is the reason why the customer needs to buy from you.
  6. Always present the price increase as an investment.
  7. Always communicate the new price with confident body language.
  8. Always have the pricing strategy developed before beginning the process.

“The customer will never pay you more than you tell them to.” – Mark Hunter

Copyright 2015, Mark Hunter “The Sales Hunter.” Sales Motivation Blog. Mark Hunter is the author of High-Profit Selling: Win the Sale Without Compromising on Price.

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High-Profit Selling

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