Team Alpha 375

Sometimes You Have to Give Your Two Cents Worth - Even To Your Best Customers

By: Mike Hourigan

Selling to existing customers who are also "friends" can present a unique set of selling circumstances. Here is an example of one of those "friendly" situations and how you can handle it.

An existing customer comes to you with an offer because you have such a good relationship with them. They have received a quotation from your competitor and it is two cents lower per unit than your offering. Because you are such a good friend, they will let you have their business if you meet the price. You have done business with them for years and consider them a friend as well. Because the client orders only once a year, there is pressure not to lose the order.

The customer knows your delivery is the best in the industry. They know you have never let them down before, and you have never sold them an inferior product. His receiving manager has a good relationship with your shipping agent. As a matter of fact, they praise you for great delivery and service all the time. They have dealt with other vendors before and know the consequences of lousy service.

So what should you do? Should you take the order and put it on the slow truck, mix up the order, or ship it to the wrong address? Or give them the thrill of their life and ship at the last possible minute? Of course not! But it is hard not to take an issue like this personally, as you have done business with them for years and now they want to nickel and dime you under the guise of friendship.

Things to consider:

Did your friend and client actually get a quote?
Is the other vendor quoting what the customer actually needs?
Does the client really need your delivery and service?
How important is your friendship to the client?

For the sake of argument, let's say the client really is a friend, needs your delivery, and is willing to show you a legitimate quote. What should you do or say first?

First, do the math and monetize the entire purchase. If they are purchasing 1,000 units, the two cent difference is $20.00; at 10,000 units the difference is $200.00, if it is 100,000 units the difference is $2,000.00. Now you can talk in terms of the difference only.

Second, say, "So what you want the most (good service), is what you do not want to pay for, is that correct?"

Third, couple the math and the friendship into a question that will make them realize how silly their request really is. Let's say they want to purchase 10,000 units and the differences is only $200..."Do you really want to jeopardize a yearly purchase for only $200?" Let's say the difference is $2,000... "You mean to tell me that my friendship is not worth two cents?" Or, you could offer to meet the competition's price for product and only charge them an additional two cents per unit for your delivery.

In many cases it is as simple as presenting your argument from a "friendly perspective."

So, the next time someone gives you an opportunity to meet a price because you are a friend, do the math and see how much your friendship is really worth.