The effects of inflationary expectations
The previous post in the series discussed the “number in your head” which amounts to management gut feel about how business should be going. Now that the world has changed, the “number in your head” may not match reality.
EkaLore written how actions in Russia and China are affecting pricing and inflationary expectation across the marketspaces. Now, with reports in the daily media talking about “inflation is high” sales staff will confront prospect and customer expectations.
A key change for sales staff will be a customer awareness and expectation of pricing changes or pressures to act to “lock in pricing now”. Fears from prospects is for estimates of benefits, pricing levels, or availability to change. Prior experience with supply chain interruptions increasing costs produces fears of new effects from other causes rolled into “inflation”.
“Bad news” is not always a bad thing for sales staff. General awareness of industry-wide problems (such as in metals or agribusiness now) provides opportunities to engage. Sales staff skills need to be supported as less experienced staff will have few prior experiences to work with prospects and bad news.
Upfront communications -- early warnings of what to expect, marketing plans that provide options for prospects willing to prevent price increases, and “no surprises” are important. A key for sales staff is not to engage a prospect to find out they heard about a price change “on the Internet” before the sales staff had the opportunity to position the news in advance. Timely communications will prevent problems with sales staff and prospects, existing customers, and business partners.
Our final post in the series, “Not what I expected” will discuss the fear customers may have about the future of their business. Inflation and supply chain disruption are stoking worries about future revenue. Those worries can change sales cycles. Look for it at www.ekalore.com/blog-1
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