Monday, April 25, 2011

Charging for what is valued

When the economy was robust, we could be sloppy. We could think in the moment and not of the future. We could rob from Peter and pay Paul--as long as everything turned out okay, who cared?

Now that budgets are tight and there's less business going around, we need to make sure that we 1) know why a customer chooses us and 2) charge for those things that customers really value.

Knowing why the customer chooses us is critical because we need that customer coming back and we need more just like them. If, in this economy, they choose your company despite the competition, you better know why--was it your creativity, your service, your hunger, your pricing, your technology?

Even more important is understanding what your customer is happy to pay for--is it your customer service, your strategy, your flexibility? In other words, do they pay gladly for your customer service or sales rep, or does the customer put up with them in order to get something else, such as your counsel?

If we don't do the above, then it means we're blindly doing business and may be charging for the wrong things, which coupled with the tough economy, is a recipe for disaster.

Barry LaBov
LaBov & Beyond

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