Customer Database: Think "Better," not "More."
More customers can mean higher overhead. Sure, but who would turn away more customers, no matter what the cost? The keyword is "cost." Better customers recognize your value ahead of price. A witty example is shown in this Vendor/Client YouTube Video.
THE PROS AND CONS OF "YEAH, WE CAN DO THAT"
Who's in the mode of turning away work these days? You'd be hard pressed to find highly finicky service providers in just about any business market. Whatever your service offering, and however thin you're spreading your services is for you and your clients to decide. But always ask the question, "What's the value of modifying your service?" With high adaptability comes empowerment; more specifically, "client empowerment." What will clients do with your custom-made proposal? Are you earning an ongoing relationship though initial "heavy lifting?" If so, your efforts will certainly pay off in the long run. But if you're creating a precedent for letting your clients name your terms, you'll be quickly underserved—and in due time, so will they."
VALUE IN A BUSINESS TRANSACTION
So, ask the question again, but put it under a new light: "Yeah, I can see the value in that." Does the "value" in each case offer benefits to both you and your customer (and their customers, in a B2B realm)? High value doesn't equate to high or low expense. We have it in our heads that "2 for 1 value" means "twice as valuable." Value is based on the ripple effect of an exchange. And ripples travel in all directions. If cost is the biggest factor in the heads of your clients, there's likely no mutual value in the arrangement (none or negative ripple effect).
Commoditized mindsets work primarily in one direction and lack the vision to see longer-term value. The principle of equal value exchange has a direct cause and effect: The higher the commodity factor, the lower the value factor. This is not to say that expensive things have intrinsic value (commodity defined). Rather, a relationship-driven mindset sees both short- and long-term benefits of a valuable product or service.
THE PROS AND CONS OF "YEAH, WE CAN DO THAT"
Who's in the mode of turning away work these days? You'd be hard pressed to find highly finicky service providers in just about any business market. Whatever your service offering, and however thin you're spreading your services is for you and your clients to decide. But always ask the question, "What's the value of modifying your service?" With high adaptability comes empowerment; more specifically, "client empowerment." What will clients do with your custom-made proposal? Are you earning an ongoing relationship though initial "heavy lifting?" If so, your efforts will certainly pay off in the long run. But if you're creating a precedent for letting your clients name your terms, you'll be quickly underserved—and in due time, so will they."
VALUE IN A BUSINESS TRANSACTION
So, ask the question again, but put it under a new light: "Yeah, I can see the value in that." Does the "value" in each case offer benefits to both you and your customer (and their customers, in a B2B realm)? High value doesn't equate to high or low expense. We have it in our heads that "2 for 1 value" means "twice as valuable." Value is based on the ripple effect of an exchange. And ripples travel in all directions. If cost is the biggest factor in the heads of your clients, there's likely no mutual value in the arrangement (none or negative ripple effect).
Commoditized mindsets work primarily in one direction and lack the vision to see longer-term value. The principle of equal value exchange has a direct cause and effect: The higher the commodity factor, the lower the value factor. This is not to say that expensive things have intrinsic value (commodity defined). Rather, a relationship-driven mindset sees both short- and long-term benefits of a valuable product or service.
Labels: client empowerment, pricing out services, terms of service, value in business
posted by Jason Steed at
12:05 PM
0 Comments
