This PPT slide, part of the 23-slide Best Practices in Price Increase Execution PowerPoint presentation, outlines common pitfalls in executing price increases and the resulting negative outcomes for businesses. It highlights 3 main issues: inadequate training and motivation of the salesforce, ineffective external communications, and a lack of control over pricing strategies.

The first section, "Failure to train/motivate salesforce," indicates that many organizations neglect to prepare their sales teams adequately. This lack of internal communication and coordination can lead to poor execution of price increases, undermining potential revenue gains.

Next, the slide addresses "Poor external communications." It points out that companies often rely on insufficient methods to inform customers about price changes. For instance, sending a generic announcement letter only to existing customers, mailing new catalogs or price lists, and issuing press releases post-implementation are all ineffective strategies. These approaches fail to engage customers adequately, leading to confusion and dissatisfaction.

The final issue discussed is "Lack of control." This encompasses poor knowledge of strategic customers, which can result in compromised pricing through non-price concessions. Additionally, companies often lack insight into competitive actions, further complicating their pricing strategies.

The examples provided illustrate the consequences of these typical approaches. An electrical components manufacturer realized only 35% of the intended price increase, damaging relationships with distributors. Similarly, a commodity chemicals manufacturer achieved just 20-30% of its price increase, with the increase lasting only a short period. These cases underscore the importance of a well-coordinated and strategic approach to price increase execution to maximize benefit capture.

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Pricing Strategy Best Practices Sales