These are indeed tough times for any business owner, when survival needs all tricks in the back. When it comes to clear pricing, one must reduce all possible costs and keep ahead of the competition technologically and commercially. For any business to grow and prosper, there is one most vital element, and that is the customer. One can sell only when someone else is ready to buy. Without proper customer service and earning their loyalty, there cannot be any future for a business entity.
To understand what I mean to say, let us try to think not as a business owner but as a customer. You will immediately realize many things that you would not have noticed when you are wearing the shoes of a business person. Customer loyalty is the result of many experiences while dealing with the products and services offered by the business. Some skills are good but some can be unpleasant also.
Clear Pricing is Very Important
One most important element that affects customers is the price of the product or service. It is not only the price that one has to pay; the way pricing gets done also matters a lot. Normally the problem is well defined if you are dealing with details of some products because in such cases, price is explicitly declared on the price tag and the customer is fully aware of what to pay for what. But in case of services this aspect is not as clearly defined as done with retailing of products. Though it may not be easy for you as a business owner to display a price tag for the service but it does not reduce its importance from the point of view of customer.
The next important question is how to handle the issue of pricing when you are selling a service.
The key is in timely and effective communication. Before taking any project, have a detailed preliminary discussion with the customer to get to know about their budget or the investment that they plan to go for the given services. If you complete the work and in the end come to know that customer is not in a position to pay for the work, then it will be a very embarrassing situation for both parties, and probably end of the road for business relations.
For the existing customers also, whenever there is any change in your pricing, make sure that you inform them in precise terms to avoid any complication of loss of goodwill at a later date.
For example, if you have given your LCD TV for repair, and the final bill is more by 40% than the original amount, then you may feel sorry. If the mechanic had taken the pains to inform you in advance then the scene would have been different. Then, it is your decision and not just a shock.
In short, while dealing with the pricing issues, especially in the case of services, communication is the key to handling the issue without disturbing customer loyalty.
So, never underestimate the importance of correctly understanding the needs and wants of the customer. Always discuss the pricing and the expenditure required to get the desired outcomes in clear and open terms. If you do this then there cannot be any complications to customer relations and you can expect to have a successful transaction.
In the end, always ask your client for the feedback and be ready for criticism. The customer observations are vital keys to ensure that in the future you improve your delivery and improve customer experience.
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