Back to Back Issues Page
The Sales Buzz Issue 105 - Business sales technique for price increases
January 11, 2011
Hi,

I'm Stephen Craine from the website Sales-Training-Sales-Tips.com


Thank you for subscribing to The Sales Buzz, the Free Sales Training Newsletter for all sales people, small businesses owners, and sales managers.

Please feel free to copy and use the information that you find here.

All I ask is that you include a credit to the newsletter or the website, and a link back to www.Sales-Training-Sales-Tips.com



Tell Friends & Colleagues about The Sales Buzz

Invite your friends and colleagues to get the Sales Buzz.

We've prepared an invitation for you to send to other like minded people. It gives your colleagues and contacts information on how to get the Sales Buzz and the 2 free sales training eBooks.

Open the invitation and send it to as many people as you think will gain from receiving the free sales training ebooks and this newsletter. Open and send the Sales Buzz Invitation...



Did you get your free sales training eBooks

If you recieved this Newsletter from a friend or colleague, or you clicked on it from the back issues, did you get your free sales training ebook?

If you didn't, open the Free Newsletter page and claim your free sales training eBooks.



Business Sales Techniques On Increasing Prices Without Hurting Sales

Many businesses face the challenging question of how to increase prices to existing customers without hurting sales to new customers.

Increasing prices is sometimes a necessity as manufacturing and other cost to the business go up. All businesses know that they have to keep a fine balance between making a profit and staying competitive in the market place.

One answer to this business sales challenge is to increase prices to existing accounts while giving new customers discounted prices.

This is done by banks and credit card companies who give new customers better interest rates than existing customers. Many service sellers do this as well, such cable and satellite TV, home and car Insurance, and health clubs and gyms.

The only down side is when existing customers find out that newcomers are getting a better deal than they are. Then you can end up giving the same discounts to them and making less money than you were.

A lesson from a big company on how to increase prices

In the UK, British Gas has recently put up its prices for supplying gas to domestic customers. British Gas has a huge sales and marketing program that has been focusing on building sales of domestic gas.

As the media pick up on any price increases they make it would be stupid to pour more money into the marketing program for domestic supplies at the same time the media are headlining their price increases.

So what they did was to focus sales and marketing campaigns on the sale of service contracts for domestic appliances such as central heating systems.

They keep these two elements separate so they can target one with campaigns, discounts, and promotions, while raising prices of the other one. Iíve no doubt that in a few months time they switch focus and target new customers for gas supplies while raising prices on service agreements.

Could you use the same business sales technique

Does your business have two or more types of products that you could use this business sales technique with.

If you have you can raise prices for one section of your sales and not experience some of the negatives associated with price increases. No discounts for new customers, so your loyal existing accounts donít feel let down.

This sales and marketing technique also makes more effective use of your budgets. You can put all your sales resources into selling the products and services that are not being increased and prevent any conflicting actions.


Letís take this a step further

If this business sales technique has started you thinking, then consider how you could adapt it and use it to increase prices without impacting new sales.

I know of companies that work under two or three different names so that they can raise prices for one and focus sales on the other.

You might think about a sales actions calendar of campaigns and price increases.

Quarter 1: Raise prices of product A. Focus sales and marketing on product B.

Quarter 2: Raise prices on Product B. Focus sales and marketing on product C.

And so on for the rest of the year.

Let me know what you think, love it or hate it, itís always good to hear opinions. Leave a comment, write an article, and share your experience. Simply move to Sales Training Blog Submissions Page and scroll down to the comments box and start typing.


More business sales techniques


Small business help to increase sales


What to charge for your products and services



The Sales Buzz is published by the website www.provensalestraining.com



Tell Friends & Colleagues about The Sales Buzz

Invite your friends and colleagues to get the Sales Buzz.

We've prepared an invitation for you to send. It gives your colleagues information on how to get the Sales Buzz and the 2 free eBooks that they will receive.

Open the invitation and send to as many people as you think will gain from receiving this newsletter. Open and send the Sales Buzz Invitation...




Back to Back Issues Page