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I just got wind of a 5% price increase for our devices and I'm sure it's going to be the same across the board.


What's the best way to close on price increase?

In the past I lost some valuable business because I tried a price increase close. Like to hear from others on how they handle this.

Thanx

Art
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The old act now or the price is going up close does have a way of backfiring. Mainly becuase the customer does not belive the sales rep. Only thing I can think of is showing them some sort of documentation. Do you have any documentation from Ricoh regarding the increase and is it something that could be shared with the customer?
I don't see how you can avoid mentioning it. If you have a proposal in front of a customer now, do you intend to eat the 5% if they decide to act upon it in January?

I follow the practice (that I'm sure most people do) of placing "This pricing good until December 31st, 2011" (or whenever the pricing is good until) on my proposals. Do you suggest telling a customer who calls back in January to buy that the price has gone up and you forgot to mention it?

If this post sounds adversarial, I did not intend it as such, just asking honest questions.
Here is the text from the email we got:


Dear Dealer Principal
Effective January 1, 2012, Ricoh will implement a price increase. Ricoh, Savin and Lanier equipment and accessories will reflect a 5% increase from the current dealer pricing and SRP prices, excluding A4 laser printers and Gel printers which will have no change. All supplies and parts will reflect a 3% increase without exception.

This increase is due to the ongoing appreciation of the Japanese Yen. We have been faced with cost increases and appreciation of the Yen for some time, and have worked very hard to avoid a price increase and minimize the impact on our customer’s and dealer’s business for as long as possible. However, given today’s economic environment and ongoing appreciation of the Yen, we have decided to increase our prices at this time.

A new price list reflecting these changes will be available by December 9, 2011, and will be provided to you at that time.

Please reach out to your District Business Manager or Area Director with any questions. Thank you for your continued partnership and business.

Jim Coriddi
Vice President, Dealer Division

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