Tariffs and product price increases are poised to cause disruption in 2019. Navigate the choppy waters by using these strategies to strengthen relationships with clients, drive sales and succeed.

1. Educate Your Staff. Be sure to explain specifically why tariffs are driving price increases on some promo products. Ensure team members understand and can speak on the topic. Consider creating a list of frequently asked questions team members might receive from clients, then drafting prepared responses to the queries that staffers and sales reps can use. This education and preparation will prove crucial in helping your team educate clients about prices as questions come up. It also helps your firm to present a unified message, avoiding inconsistent or vague explanations, which rankle clients.

2. Be Transparent and Give Advance Notice. The worst way for clients to learn about a price increase is from an invoice. Instead, alert them ahead of time when they can expect the increases to take effect. Provide a clear explanation, supported by facts, about what’s driving the lift – including why it’s necessary. Also, consider mentioning strategies you’re using to mitigate the increase. In the case of tariff-compelled promo price increases, it might be helpful to note that prices could fluctuate throughout 2019, and that you’ll work diligently to keep clients informed in advance of changes. A truthful and transparent explanation can build goodwill, while the early notification gives customers time to make adjustments on their end and possibly place advance orders at current pricing.

3. Provide a Personal Touch. Company leaders and sales professionals should consider holding discussions with top clients to notify them personally of the increase before more general notifications are issued. This shows respect and appreciation that could resonate with clients, encouraging loyalty. It also provides a forum in which personal relationships can be leveraged to help smooth the news of the coming increase. Plus, the discussion gives VIP clients a chance to ask questions specific to their particular situation.

4. Offer Alternatives. Make clients aware that you can help them find potential alternative products that fit their budgets. These can be products produced outside China, items from a different product category that are less expensive and still serve the promotional purpose, and comparable products that, even if tariff-impacted, are lower down the price scale than a higher-end item a client was initially considering.

5. Emphasize Value. Promo products aren’t about to stop being an effective advertising medium because of price increases. They provide a cost-per-impression that remains considerably cheaper than alternatives like prime-time television spots, ads in newspapers and national magazines, and targeted mobile ads. It’s important for distributors to emphasize to clients that a promo products initiative creatively conceived and executed, and targeted to favorably influence a desired audience, will still generate cost-effective ROI. “Consultants who provide value, and who work within a client’s budget and not on the price of goods, will have little problem,” says Gregg Emmer (inset image), VP/CMO at Top 40 distributor Kaeser & Blair (asi/238600).