Securing price rises across all product ranges ranging from 1- 8%, the first increases in several years.

The Client  

Total Negotiation Group’s client is a global FMCG supplier which TNG had not worked with before. The work took place in a key overseas subsidiary.

Their Challenge  

The client had not passed on material cost increases for several years due to challenging market conditions.  Management realised it was now essential to increase their costs prices due to growth requirements, consumer feedback and market demand.  

They operate through a range of distribution channels, but predominantly grocery accounts and independent retailers, both of which are notoriously challenging in price negotiations.   

Objectives of the engagement 

Complete alignment of message and approach across all distribution channels was key. As it was the first time that a significant number of account managers had been tasked with delivering price rises there was a need to strengthen their negotiation skills and confidence in this specific context. 

The solution 

The engagement was a combination of strategic planning facilitation and capability build.  In the first phase Total Negotiation Group were instrumental in aligning the leadership team around a common strategy. Once this was in place the negotiation workshops were rolled out with the sales teams. The one-to-one coaching sessions were carefully timed to support team members as they prepared for their price rise negotiations. 

Sales Director feedback: 

“The whole process was extremely well managed and helped change the mindset of the organisation. What impressed me most was the practicality of the content and the relationships, which Mark, the TNG consultant built at all levels both pre, during and post implementation. I would have no hesitation in recommending Mark and the TNG team, as I have to our other operations globally.” 

Outcome 

Majority of retailers agreed quickly due to the well-planned approach taken by the account managers highlighting the opportunity for both parties. 

A couple of retailers took longer to reach agreement, however with close ongoing support from TNG and a consistent, strong approach from management, agreement was reached, and significant incremental value achieved.