You Can’t Please Everyone, All the Time.
5
Today, my wife Sheri came home and was upset about a customer that called her from out of state. She said the lady wanted a baby gift basket that was on our website. The problem was she wanted the exact same gift basket for ten dollars less than the price on the site.
Since we are a custom gift company, we always work with customers at THE original basket boutique to make the perfect gift that fits in their budget. The problem was this lady didn’t want something different; she wanted what she saw online. Sheri tried to explain the details of the gift basket and sell value, but this lad didn’t want to hear any of that. The lady then proceeded to ask the price on every single item in the basket, so Sheri who is the best at customer service that I have ever known, obliged her by giving retail prices of some of the items so she could customize a gift basket.
In a gift basket business there are other costs built in to every single basket we sell. Like any small business owner, you have overhead. We have a building, utilities, advertising, and various other expenses related to running a business and not to mention we are trying to eek out a living as well! This lady couldn’t comprehend why we wouldn’t meet her price demands or why she couldn’t by three items at retail and still get Sheri to build them in a basket. She did not understand there were other costs involved to build a basket.
We wouldn’t ask a plumber to not charge for his time or a mechanic to charge for parts and not the labor, would we? Why is a design fee for gift baskets any different? Now, 3 years ago, when my wife was just starting out as a small business owner, she might have caved and gave in to the customer. Sheri was used to making decisions like this in multi-million dollar stores where it wasn’t really her money. During our first year, we probably under charged half our clients, but we still survived in spite of our generosity. The point is, as business owners, we have to draw the line at some requests. You can’t make everyone happy all the time!
Needless to say, we have one person out of hundreds of clients that was not satisfied. It’s not the end of the world. As small business owners, we have to consider many factors when it comes to customer satisfaction. We don’t want to anger people or turn away business, but at the same time, we can’t afford to give away everything. We have to look at every situation and ask ourselves; “Is this worth resolving with a discount or free item?” Now, I am not saying that we solve all customer complaints this way. If a customer is upset about a purchase or product, then it is our obligation as business owners to resolve the situation. Sometimes that means giving something up.
The recent tough economy has changed small businesses because it has forced many of us to do what ever we can to make the sales, even if it means discounts or giving something away. At the same time, this has trained consumers to never be satisfied with the listed price. As we are coming out of this recession and starting on recovery, small business owners need to set some reasonable boundaries. We can’t discount our way to success. Small businesses that offer quality work, high caliber products and fair prices will surely succeed during this recovery.
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David Beckham, MBA, is a Marketing, Online Marketing, and Small Business Development Consultant. For more information and services offered, please contact me or visit my web site at http://www.marketpromba.com.
Image: graur razvan ionut / FreeDigitalPhotos.net
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Absolutely, please feel free to share. Thank you for reading my blog. I am getting ready to post a whole bunch of new stuff soon. Thank you for your comments.
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Thank you for highlighting this, David. Small businesses are rarely the ‘cheapest’, as we do not compete on volume (leave that to the Club stores). What we offer — in addition to great value — is personalized service and a community-based resource.
Hi David – This is an issue that gets far too little attention. I posted a similar link yesterday about how to fix the travel business, where more and more decisions default to price and less and less satisfaction happens. Maybe there’s a correlation, ya think?
Great article – I am going to post this in our company blog. Thanks.
Great article David! When a business owner discounts a product he or she doesn’t go back to the vendor and ask for a cheaper rate in order to recoup the loss. To discount or not to discount really isn’t the question. The question is are you willing to devalue yourself, your time, your vision, your business in order to recoup the loss? Customer service is such a fine line, but you’re right to but the business first… so it’s there to service the next customer.