You’ve most likely seen the commercials asking consumers, “What’s in your wallet?” Yet, from a business perspective, finding out what you have in your wallet isn’t nearly as important as finding out what you’re missing. That missing link is known as wallet share; and understanding what’s NOT in your wallet can lead to tremendous opportunities in terms of your business’ ability to generate profitable growth.
As mentioned in a recent blog post, getting your organization ready for raw material inflation includes preparing your sales team for price increase conversations with customers. It’s a skill that needs practice and developing backup strategies in case of pushback is a key component to your sales training plan.
Need help? You can use our Negotiation Tactics Infographic as a starting point.
The Federal Open Market Committee released their most recent inflation forecast for 2017 and beyond. And while inflation remains historically low, it’s also on the rise, with 1.9% projected in 2017 and 2% for 2018. We have already seen raw material inflation edging up the costs of metal, rubber and other industrial commodities. To quote a recent Bloomberg article, these prices have been “on a tear” since the second half of 2016.
When you run a business, talk of inflation typically translates into fear and angst. Here’s how we suggest you prepare for what’s coming…
Getting to the "right" price for your customer can be difficult and time consuming. How do you know you are pricing correctly? How do you create consistency across your organization? And more importantly, how do you maximize your profitability without losing business?
Navigating your way through these challenges usually requires taking a step back to level-set your current processes. So, where do you start?
Striking the right balance between effective pricing strategies and company performance is often an issue because there are so many factors involved. With price being the most important lever impacting your bottom line, one major pricing mistake could risk your company’s profit potential.
Several years ago, an Ohio-based specialty metal business made the decision not to charge for freight costs, even though their products were extremely heavy. The rationale? None of their competitors were charging, so they couldn’t either.
Annual budgeting is the roadmap for strategic planning, and analyzing results is how you track progress toward your goals. When results differ from plan, you find yourself asking why. Month after month you may equate these discrepancies to the hearsay you get from the field — or as market-based — and move on. Then the cycle starts again: new year, new plan, new expectations.
But for every business there is a concrete reason for the gap, and there’s a way to remove it: companies need more detailed plans they can accurately measure against.
So, how do you get there?
For the fifth year in a row, INSIGHT2PROFIT has been named an Inc. 5000 company, #2487 fastest growing private company in the United States and #21 Top Cleveland companies.
Achieving significant pricing gains can feel like a long, hard-fought battle. This makes it all the more satisfying when the numbers start to roll in, validating your efforts and proving without a doubt that profitability is attainable.
The thought of losing those gains may keep you up at night. What safeguards can you put in place to protect the gains you’ve achieved and prevent your company from sliding back into past poor pricing habits?
It all starts with building a confident sales force.