"But your 'competitor' charged me less!..."

7 replies
How many of you have booked a client for a given service, where they were unsatisfied with the previous vendor?

When you price these folks - is your natural reaction to quote lower than your competitor who screwed up? It feels like the right thing to do right?

If you asked me yesterday, I would have probably agreed that this would be the correct course of action. However, I was overcome by greed and pride in a moment where a client was "begging me to cut them a break" on pricing. I didn't budge and closed em like an SOB.

After the adrenaline wore off, I began to think about what happened... I think I can intuit what happened, but I am having trouble articulating what I think happened... So, I'd welcome you guys' analyses? I'll answer any questions - just none related to the product being sold.
  • Profile picture of the author seonutshell
    They knew they needed a quality service, and tried to negotiate to get it cheaper, you didnt budge and they had no choice but to pay you
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    • Profile picture of the author Claude Whitacre
      They weren't unhappy with the competitor's price, only their service.

      Had you dropped your price, the value would have been suspect. Me? I would have charged just a tad more. After all, we're providing superior service.

      If you were getting your car's transmission repaired, and the last place you took it to screwed it up. Wouldn't you expect to pay a bit more to get it fixed right?

      It would feel strange to me if a better service cost less money.

      You may have saved the sale by not dropping price.

      And...not dropping your price is what reputable business people do.

      Discounting is begging. But giving an extra free service? That's a Gift.
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      • Profile picture of the author Matt Lee
        Originally Posted by Claude Whitacre View Post

        They weren't unhappy with the competitor's price, only their service.

        Had you dropped your price, the value would have been suspect. Me? I would have charged just a tad more. After all, we're providing superior service.

        If you were getting your car's transmission repaired, and the last place you took it to screwed it up. Wouldn't you expect to pay a bit more to get it fixed right?

        It would feel strange to me if a better service cost less money.

        You may have saved the sale by not dropping price.

        And...not dropping your price is what reputable business people do.

        Discounting is begging. But giving an extra free service? That's a Gift.
        Couldn't agree more with this.
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  • Profile picture of the author bwh1
    Higher or at least the same but definitely not lower.

    "You get what you pay for" - your client also know that one.

    By paying less he got a bad service so he knows that the better solution does cost more.

    G.
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  • Profile picture of the author bizgrower
    Quality is not free.

    (I just made that up. ... Not really. My cousin
    with a PhD in economics said it. It was in response to a
    book with a similar title that was very popular
    at the time.)

    Dan
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  • Profile picture of the author Jason Kanigan
    Why would you charge less?

    If they were happy to pay for what they thought was going to be a good service at the level they agreed upon with the last vendor, they can pay you at least that much. And since you are the real deal, they should be happy to pay more.

    If they do the last minute bargain attempt, take away your service. That's what I'd do. You expect me to rescue you from your lousy situation, and then give you a deal?? No thanks. Appreciative Clients Only. "So can you do any better on the price?" "...wait a minute. I thought...I thought you were looking for a vendor who could reliably and effectively handle your problem." "Uh, yeah." "So the previous vendor couldn't do that, but you were satisfied to pay him $X. Isn't that right?" "Oh." "And you're convinced that my service is better and can actually do what you want, correct?" "Yes." "So why then would you think this situation calls for a discount?" "Um. ...we kinda do that to all our suppliers..." "Wait. You don't value your vendors and what they do for you?" "I didn't say that! We want you here! Let me sign...hand that over..."

    Some people believe they are great negotiators. What they really are are people who have been successful with intimidating salespeople--who are more than willing to fold on the slightest chance they might not get the order. As salespeople, we need to STOP trying to sell to everyone we encounter. Most people are bad for our business.
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  • Profile picture of the author Jeannie Crabtree
    I would not charge less. Value what you do and your client will too.
    I have given coupons for first time clients, in order to get more clients,
    but it states what the regular price of the consultation was.

    I find if people start out getting discounts, some of them want to
    try to get a discounted price before they will settle for the regular
    price on future services.
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