Saturday, September 03, 2011

 

Will a pending price increase drive urgency to buy?

Yes, for some, but it's a double-edged sword.

You can use pending price increases as a carrot. If you have prospects on the fence, locking in a lower price could get them over the hump. But if they were on the fence to begin with, they probably had already made up their mind to buy.

Price increases, of course, are very different from price discounts. Too many companies put their products and services "on sale" far too often, hoping it will generate more sales. But if your prospects get used to your frequent sales intended to drive urgency and activity, they'll end up having the exact opposite effect.

Offering a lower price will not inherently change the prospect's need for what you're selling. It won't change how they've prioritized the solution or its outcome in their organization. Get some buyers to commit who may or may not actually need or want your service, and you're setting yourself up for more expensive customer relationships, difficult deployments, higher churn, etc.

The best way to leverage pending price increases is with late-stage opportunities. Isolate the prospects who already have a need, already have urgency based on the inherent value and expected outcome of what you can provide, and get them to commit more quickly before the price goes up.

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