This weekend a colleague asked a myself and a few fellow business owners if our customers were asking for discounts after work was complete. His customers were telling him they could pay him immediately if he took another 20% off the bill or he would need to wait for payment. This is for work he already had done!! With the recession he added that his closure rates on bids went from 50% to under 10% and he was desperate. He is in a competitive, commodity market, but something isn’t right here. He is taking the 20% off the bills and discounting, but his business is not doing well. You could see the worry on his face and I am sure the customers are as well.

I suggest if customers are asking for discounts that you change the scope and give options. Give three different scopes of work with three different price points, but then hold firm on the work being done. You must do this to stay healthy and your customers should respect this. People love options and the customer will understand that with options there are varying levels of product.

There are typically three things to look at with any project scope; price, timeframe, and quality. Keep to these three sides of the triangle when bidding and discussing jobs with customers.

Before finding yourself in an unprofitable situation, the best businesses find ways to differentiate themselves and offer unique and special services and products. Customers will be happy and your business will remain healthy.

Tags: Boater feedback programs, Boater Loyalty, Customer Intimacy, Customer Loyalty, Customer Research, CustomerPulse, Print Buyer Opinions, Printer Loyalty Programs, Printer Referral Programs, Printing

This entry was posted on Sunday, May 3rd, 2009 at 7:04 pm and is filed under Blog Posts, Press Release. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.