How can I increase my price and still save costs for my Customers?

Is this actually possible?

Isn't this a zero sum game? If I increase my price, doesn't the customer automatically end up paying more?

Not if you do Solution Selling.

What is Solution selling?

It means suggesting a overall solution for the customer's challenges and problems, not just sending proposals on products and services.

To save costs, it means the following three steps:

a. Understanding the customer's way of looking at cost.

b. Suggesting the best products from our portfolio.

c. And helping the customer save some costs from the total basket of expenses.

Lets see some examples:

a. a paint company studies the entire painting process at their target car companies. This enables them to understand that cost of paint is only a small proportion of total cost for the car company. Additional costs would include cost of downtime, when changing over from one paint to another. This company invented a paint that would clean up faster. The net result - paint shop downtime reduced dramatically. Company benefits by extra production from same assets. Paint company gets a price increase. Win Win for all.

b. A tile company is facing competition from local and unorganized players. It adopts the solutions selling approach. It starts asking the question - does the customer set a budget for the tile? Obviously not. A homeowner has a budget for interiors. I will spend Say Rs 3 Lakhs on my home interiors. A tile owner suggests the better quality Italian designer tiles in his portfolio, simultaneously recommending savings in taps, paint and ceramics. Customer gets a more beautiful house in a lower budget, his overall costs are saved and the tile company achieves a higher sale.

c. An IT Company studies the total cost of business operations and the overall spend of the IT budget. Discovers excess expenses in purchasing the wrong IT infrastructure. Discovers excess expenses in maintenance, obsolescence, spares, etc. Offers a total outsourcing solution by showing business benefits to the senior leadership of the client. Wins the contract which is larger and for a longer duration. Simultaneously saves costs for the client and reduces their pain area.

That's solution selling for you. Sell higher, save costs for the client.

..........based on ideas contributed by senior members of the companies mentioned.