Have you ever heard the saying? “The customer is always right!” Well, I have, and if you are like me, you took that to mean, that although the customer may be wrong, it is okay. That is quite understandable because as a small business, every dollar counts. However, does this philosophy lead to success? I want to argue that it doesn’t.
Operating on a philosophy that the customer is always right often leads to lose-win transactions where customers get what they want at the business’s expense. A lose-win scenario happens when you sell your product or service at a price less than the cost. Here are some reasons:
- The pressure of competition
- To attract customers
- To appease a disgruntled customer
- Negotiating with bargain hunters
- Legislation
Such transactions equate to a withdrawal against your bank account.
Alternatively, in win-lose situations, a company charges more than the average price because the product is scarce or inferior, for example. The result is the business wins, the customer loses, and the company’s bank account gets fatter. However, although a company may gain in the short-term, it will suffer long-term as they lose repeat business and referrals.
A lose-lose transaction speaks for itself because no one wins. The customer is not satisfied, and the business is not able to attract or keep customers. If you want to make regular deposits to your bank account, then the focus needs to be win-win transactions.
First, be willing to listen to your customers because they know what they want and only they can tell you. So, have a conversation!
Second, have a world-class product/service to offer your customers, because there’s nothing worse than receiving poor quality products or services.
Third, your product must satisfy their wants. Even though your product/service is world-class using strong-arm tactics to sell customers something they don’t need or want will not put you in good standing.
Now, once you can fulfil the above criteria, you have a win-win transaction.
Lastly, remember, there is nothing wrong with saying, “I can’t help you with this but, I know someone who can.” This scenario is the no-deal option, where there are no winners or losers.
In closing, if you want to increase your chances of success, be in the business of creating win-win transactions for you and the customer.
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