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Is there anything worse a key account manager has to do than tell clients about a price increase? You're between a rock and hard place. Your company says to get the price rise across the line while your clients refuse to accept. Now what? CHAPTERS: 00:00 Introduction 00:46 Start with a conversation 01:22 Give advance notice 01:46 Provide context 02:16 Don't apologize 02:46 Don't over-explain 03:14 Keep it simple 03:45 Consider alternatives 04:26 Negotiation strategy 05:13 Loyalty doesn't equal discounts 05:49 Annual price reviews 06:22 Define escalation process 07:12 Deliver a consistent message 07:38 Manage your feelings 08:25 Quick lap recap 09:17 The KAM Club HOW TO TELL CLIENTS ABOUT A PRICE INCREASE Conversation first, correspondence second. Give your clients pre-warning that a price change is coming. Give advance notice. Your clients will need to take further action in response to a price rise so give them enough time to do what needs to be done. Let clients know what's changed. Frame the price increase in terms of the value you've delivered, the benefits they've received and the promise of more to come. Don't apologise. You have every right to change your prices. It costs money to develop products, services and people. Don't over-explain. Your client doesn't need to know all the gory details of what led up to your price increase. You'll only confuse them or invite conversations on topics that are none of your client's business. Keep it simple. Complex pricing models are difficult to explain and hard for your client to understand. Consider alternatives. Instead of a price increase, what else can you do to reduce the cost to serve? Will you negotiate? Prepare for the best-case scenario and the worst. What's your walk-away price? Loyalty doesn't equal discounts. When it comes time to renew, clients may expect discounts, not price increases, as a reward for their loyalty. Be prepared for that conversation. Implement annual price reviews. Save time and set expectations by embedding annual price reviews into your agreements where appropriate. Let me speak to your manager. Define escalation paths if your client does not accept a price increase. Consistent message. Ensure everyone in the organisation delivers the same message to your clients. Manage your feelings. Acknowledge that conversations with clients about price increases are tough and your feelings are valid. ⭐ Warwick Brown Founder | Account Manager Tips --------------- ⏯ SUBSCRIBE Account Manager Tips helps busy key account managers get results by turning plans into action. Subscribe at https://amtip.co/subscribe --------------- 💡 THE KAM CLUB A private learning community helping busy key account managers get results. Find out more at https://thekamclub.com --------------- 🔖 RESOURCES Read the full blog post at: https://accountmanager.tips/how-to-te... Exactly What to Say: The Magic Words for Influence and Impact by Phil M. Jones* https://amzn.to/2IRqRhJ *Affiliate link. I may earn a commission, but you'll be helping the channel! --------------- 👋 CONNECT WITH ME 📍 LINKEDIN: / warwickabrown 📍 FACEBOOK: / accountmanagertips 📍 PINTEREST: / warwickabrown 📍 INSTAGRAM: / warwickabrown 📍 TWITTER: / warwickabrown --------------- 📞 CHAT WITH ME Grab an obligation free call to chat about key account management and learn more about how I can help you. https://amtip.co/discovery --------------- 🔗 ABOUT ACCOUNT MANAGER TIPS Helping organisations grow client revenue, reduce churn and get things done by giving their account management teams the tools and the mindset that gets results. https://accountmanager.tips --------------- #amtips #keyaccountmanagement