How does the international trader inform the price increase?

Release time: 2018-08-03 13:13:18

Now Lucy is following in trouble with the price she provides to her customer. With the material price increasing and the exchange rate decline, she had to inform the customer the unit price will rise 0.2 USD. It's a common thing for sales to do it, but the customer is sensitive to it and rejects to accept it. The negotiation is deadlocked. How could Lucy do?

How does the international trader inform the price increase?

Maybe you think the material price increases cannot be controlled. It's right, but there are still some ways to deal with this situation. The following methods may give a reference.

For the product that is easy to be influenced by the material, we should set a validity period for the quotation or set a price floating range. Then show the relationship the product price with the material. For example, if the material increases by 10%, the product price increase 5% or 8% is proportional. It can be calculated and there is also evidence supporting it. It's easy to set a price floating range. We can declare that only if the material price increase is over 5%, more than 5% of the part will be shared by the customer and us. The benefit that earned by the material dropping is also shared by each of us.

The above is for the new customer, how is the old customer? Maybe you didn’t know the quotation skill previously and didn't do like that. But now you have to increase the price, how should you do? Is there any method that does not repugnance to customers


We must be clear whenever you inform the customers of the increase in price, they all won't like it. It's related to the benefits and emotions. Such as the sales told you the house is 30,000/㎡ last week, but now he tells you it's 33,000/㎡today, you will also dislike it. The exchange rating changing is a reasonable excuse, but if you earn more through the exchange rate changing, will you refund the exchange rating difference. If you only ask they bear the loss, but nor share the benefit, why they are willing to negotiate with you? So the premise of the negotiations is to develop a plan that both sides feel fair. Informing the increasing of price is not a simple way to tell his the material rice increasing, but to tell them the detail reason, give enough evidence to support it, and tell him the product price composition and how much the material occupied, then give him a PDF document to reference. On the basis of this, even the customers may be not satisfied with it, we can still negotiate with them.

In the end, we can emphasize that it will not happen again, we will set a price range and will share the loss and benefit caused by the material float with them. A top salesman, whenever you make a plan, it’s the premise that makes the customers feel basically fair, thus you will have space to negotiate with them.