243 Pinks And Blues: Price Increases
On episode 221, I hosted a Raw Materials Supply Chain Update Roundtable with Mike Standish of Radical Polymers, Jill Cavano of Scranton Associates, John Zibrita of Zibex, and Gary Garcia of Masters Company. We talked about Supply Chain issues, and how it is affecting the water treatment industry. Since then, I\u2019ve received numerous questions about something that is concerning many water treaters right now: Price Increases.
People in the industry are concerned with the number of Price Increases we are getting hit with right now in all areas of business from Asset Control, Labor Raises, Business, and Workforce Growth, to Transportation, Insurance and Utilities; how should we pass those Price Increases to our customers, and what are the consequences of passing on those Price Increases to them? Today, I am going to talk about what happens if we don\u2019t increase our prices, the economics of pricing your services, and how to have a \u201cPrice Increase\u201d conversation with a customer.\xa0
Bottom line: Today we\u2019re going to talk through the economics of Price Increases.
Your roadside friend, as you travel from client to client.\xa0
-Trace\xa0
\xa0
Timestamps:\xa0
Pinks and Blues and new events [2:00]
Thinking On Water With James [08:52]
Price Increases: The questions on everybody\u2019s mind [10:40]
Simple Economics: Why you should increase your Pricing [15:02]
When your customer objects to a Price Increase [18:50]
The Supply Chain Materials Shortage Issue [19:58]
How to initiate a Price Increase conversation with a customer\xa0 [25:15]
Why keeping a good relationship with a customer is important\xa0 [30:48]
How to create a Win-Win for you and your customer [35:20]
Episodes to listen to get more information about the Supply Chain issue [40:57]
\xa0
Thinking On Water With James:
In this week\u2019s episode, we\u2019re thinking about the dangers of our job and how we can be safer. Industrial Water Treatment has inherent dangers that must be acknowledged and managed. From hot, pressurized boilers, acids, and caustics to confined spaces, energized equipment, and environmental exposure. Do you think about your safety every day? You are the first line of defense in your own safety, after all. What resources do you have to not only learn about any dangers but also how to manage them? Take this week to think about your safety and the impact not just upon you but upon those around you as well.\xa0
\xa0
Quotes:
\u201cWhen we\u2019re talking about Price Increase, we are not talking about price-fixing. We\u2019re talking about responding to the market and to all of the things that happen.\u201d - Trace Blackmore
\u201c(Losing a business due to a Price Increase) might not be the worst thing depending on how you\u2019re looking at the full picture.\u201d - Trace Blackmore
\u201cWe need to look at making sure we\u2019re doing regular Price Increases just to keep up with all increased prices.\u201d- Trace Blackmore
\u201cIf the company is not making a profit, we are not in a healthy company.\u201d - Trace Blackmore
\u201cStrong companies are constantly evaluating how much money is coming in, how much money is going out, and is that acceptable with what the company has to make.\u201d - Trace Blackmore
\u201cWe are in a Supply Chain breakdown right now.\u201d - Trace Blackmore
\u201cIf the material is not available, the Price is going to go up.\u201d - Trace Blackmore
\u201cAnything that is not a win on both the client\u2019s and customer\u2019s side will not work long term successfully.\u201d - Trace Blackmore
\u201cWe have to make sure that we get a win so that we can help our customer win too.\u201d - Trace Blackmore
\u201cThe more information your customer knows, the better decisions they can make.\u201d - Trace Blackmore
\u201cWhen Prices go up, a healthy company needs to increase their Pricing.\u201d - Trace Blackmore
\u201cWe have to make a profit in order to stay in business. Profit is essential in order to stay a valuable company.\u201d - Trace Blackmore
\xa0
Connect with Scaling UP H2O:\xa0
Email: corrine@blackmore-enterprises.com (podcast producer)
Submit a show idea: Submit a Show Idea
Scaling UP! H2O on LinkedIn: company/scalinguph2o
Scaling UP! H2O on Facebook: @H2OScalingUP
\xa0
Links Mentioned:
236 The One Where We Talk About Waters Treaters Changing The World
Team World Vision: Join Team Scaling UP Nation for the 6K
221 Raw Materials Supply Chain Update Roundtable
223 Pinks and Blues: Phosphonate Replacements
\xa0
Events:
The Hang - April 14, 6:00 p.m. EST, USA
2022 AWWA Sustainable Water Management Conference \u2013 March 27 to 30 in Denver, CO
World Water Day \u2013 March 22
\xa0\xa0
Books Mentioned:
The 7 Habits of Highly Effective People
\xa0