30

JAN 21

More on raising your prices

More on raising your prices

On December 2nd last year, we published a blog post titled 'Should you be raising your prices?' Soon after, I received the following email from a Member.

I'm sharing this with you in case you feel it could work well for you too, although I must add that this does not meet my criteria of 'absoute honesty and transparency at all times'.  

Dear Bruce,

Let me tell you a story.

In 1971 I was working for my family's business. One morning we were sitting around in the sales office in an atmosphere of gloom. Someone said business is dead. My Uncle David thought for a minute, then he said:  'Let's have a price increase'. Everyone looked at him as if he were mad but he stuck to his guns.

We produced a new price list with an increase of approx 10%. We ran off a few hundred copies on the old Roneo machine. We composed a letter referring to imported price rises and wrote to all our customers.

The following day the phone started ringing.... and didn't stop. Everyone was complaining. We gave every caller the party line: 'Sorry about this but we can't help ourselves. If you need anything give me your order right now; I'll see if I can squeeze it in at the old price.'

We had a bumper month and I learned a valuable lesson which I put to use years later.

In the '80s when I had my own growing business, I would turn the annual price rise into a promotion.

In Mid-April, we would send out the new prices with a letter, inviting orders before the end of the month at the old price. First week in May, the salesmen would phone all the customers who hadn't replied, offering the squeeze.

Finally, mid-May the salesmen would phone around all of the customers who still hadn't ordered. They were instructed to say 'Mr Spiers is away for a few days. Give me an order now and I'll backdate it, and slip it in before he gets back.' The customers liked being a part of a conspiracy against me.

Result; triple whammy; three slices of the same cake.

Feel free to use this story.

Kind regards

Neville

 



Bruce King

BRUCE KING

SALES COACH & KEYNOTE SPEAKER

Recognised internationally as a leading sales, marketing and personal growth strategist, Bruce has more than 20 years experience addressing audiences and coaching companies sales teams, directors and managers in 23 countries.

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