Traditionally, sales teams have been responsible for implementing a price increase in the market. As the industry complexifies, shifts and changes, this begs the question ‘is there a better way and who is responsible for a price increase?’.
In a high inflation environment, and when dealing with dominant retailers, it is critical to successfully implement a price increase whilst maintaining a total business mindset.
How many times has it been said ‘the sales team will land the price increase’?
Price architecture and price increases should never solely be the responsibility of the sales department. Due to this sales team ‘alpha’ approach, some teams can feel significant weight on their shoulders when negotiating a price increase with Australian retailers. Every department, team and manager should play a role in the process.
Ideally, the whole business will rally around the sales team and share valuable information that was once buried in the back office of each department. This will provide the useful information needed to make well-informed decisions and create positive outcomes during negotiations. Keep in mind, negotiations are only going to be as successful as the quality of the data, insights, and information that a business negotiator has as their fingertips.
Further to that, what roles are the senior leaders taking in the process? A CEO, CFO or Supply Chain Head can provide valuable influence when negotiating with dominant retailers.
Hexis Quadrant, through working with both retailer and supplier clients across Australia and New Zealand, have developed a detailed step-by-step framework for implementing a price increase effectively. This process can take many months to effectively implement and needs to be developed at shopper, category, brand, channel, and customer levels. Get in touch to find out more here.