We proudly bring you another case study about “Company A,” one of our best clients that’s run by a savvy woman!!! I mention the founder/CEO’s gender because it’s relevant to this post…
She just emailed me to describe a situation where she’s pitching a marketing package to an internationally recognized businessman and author. To me, the price of the contract (asking price) is very reasonable, in this particular marketplace and based on the value the client is likely to receive from implementing this program.
And yet, this potential client wants to knock $500 off the price—for the privilege of doing business with him.
While I’m NO expert in male-female relations for sure, I know this: women are terrifically capable to succeed in business! Full stop!
Consider these strategies and tactics to hold your ground and set boundaries:
1. Determine which Clients are Good Clients for Your Company and Which are Not.
Get rid of the duds. You’ll feel better and increase your profitability.
2. Set Your Prices for Each Product and Service. If it’s Market Practice to Discount or Negotiate with Clients, Raise Your Prices to Allow for the Discounts.
In other words, set your prices higher or high enough to allow for granting discounts. You can set your pricing levels (let’s assume the average discount is $400 and you want to net $2,200) at say $2,600 or you can estimate the number of clients who will request and receive discounts and then average the discount across your business and set your pricing accordingly. Under this second model, you might raise your pricing to say $2,450, allowing for the fact that some clients will pay full freight and some will get a discount and you’ll net the $2,200.
3. Hold the Line.
At some point the best response to a challenging client is, “I wish I could meet your terms but we offer the same top quality service and time commitment to all our best clients and we want to ensure that we can put our team in that position to serve you and meet your goals, objectives and timetable.”
In other words, at some point, Enough IS Enough!
And you must ask yourself this regularly: For the person (prospect) who nickels and dimes you and is generally a PITA [pain-in-the-neck…] going in (before they sign the contract), how are they likely to treat you and your team throughout your relationship? After they pay your deposit and your fees?
Recently, we “fired” two clients for poor performance. They paid low rates, demanded top-tier service and paid late. 3 recipes for losing money. Out! While we don’t like to dismiss clients or turn away business, we have been able to use the newly found time much more productively and profitably and improve morale!
4. Don’t Answer the Difficult Client Right Away. Take Your Time to Craft a Solid, Well Thought Out Solution.
In today’s Microwave Oven Society, we receive instantaneous communications and people expect and are getting instantaneous responses. Heck, people sleep with their Blackberry. Ugh. At one point last year, my stepmother told me she refused to have dinner with me if I brought my Blackberry (thankfully I’ve reformed since then).
Take your time and communicate with the outside world on your timetable and in a way that is consistent with your style and your company’s mission and culture! The best customers will appreciate and respect that.
5. Take a Break and Celebrate Your Success.
Most of the entrepreneurs we work with drive themselves in overdrive. We do too. But, sometimes maybe this is too much, or you’re at the part of the cycle that calls for a break…reward yourself. Be proud of your achievements and accomplishments. How many people could achieve what you have achieved? Celebrate!
7. If in Doubt, Call the Committee!
The Committee is what my Dad calls “The Non-Existent to Do the Unnecessary.” In other words, an outside, independent party (person) who can share your pain and give you insight and guidance. As a matter of fact, the Committee could be your favorite Easy Chair. Or you could actually create your own special committee and “staff” it with one or two people who can brainstorm with you.
Some of our clients delegate certain assignments, tasks and challenging situations to “the committee.” Some people use Small Business Advisors’ Ask the Advisor service.
Other clients use the concept of a committee as a way to buy time and distance themselves from challenging people and challenging situations…An excuse if you will.
Either way, all good reasons and a very powerful strategy.
7. Remember, Stick with Your Goals, Objectives and Corporate Principles, Especially When the Crazies Glom on to Your Success and Throw Junk in Your Path.
They just want a free ride. Not on your watch!
The thing to remember about running your own business is You Drive the Bus. If you don’t like the route, change it. If you don’t like some of the passengers, kick ‘em off. If you don’t like some of the maintenance crew members, fire them.
You control, and even if you don’t exercise that control all the time, the feeling of control should give you power!!!
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management, manager, run business, profit, cogs, cost of goods sold, revenues, sales, costs, gross profit business plan, investors, finance, profit, organize, plan, map, budget, resources, mission, goals,milestone, capital, vendor, supplier, employee Eric Gelb, Gelb, Joe Gelb EIN
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