Business Sales Techniques On Increasing Prices Without Hurting Sales

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.

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. I’ve no doubt that in a few months time they switch focus and target new customers for gas supplies while raising prices on service agreements.

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 don’t 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.

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.