This is the eighth installment of Straight Talk About Foodservice Pricing, which can be downloaded for FREE from our eBook library.
Wouldn’t it be nice to institute a price increase of say, 3.5%, and see your revenue increase by 3.5% for the same volume in the next month? It never happens.
From the moment a pending price increase is announced, Sales Managers and Sales and Marketing Agencies begin to dread the process of “selling it in.” Distributor buyers begin to practice their objections, delaying tactics, and tricks of the trade which reduce or minimize the planned impact. And Finance tries to guess how much of the planned increase will actually “stick.”
Then the next 6-8 weeks are spent in explanations, negotiations, threats, and fighting off ill will, while very little new business is being established.
But I believe many manufacturers are missing the boat when it comes to tools to build revenue. There may well be a “painless price increase” hidden among the many processes that take place between the establishment of product prices, the negotiating and documentation of special deals, and the final collecting of receivables.
Because there is a long sequence of processes which cross many departmental boundaries both inside and outside of headquarters, there is a very high potential for “leakage.” And while most people recognize that the price actually collected often differs from the price that is expected, it seems no one has the time to find and plug the leaks. In response, we’ve prepared a…
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