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Sunday, August 11, 2002

Flexibility can tame customers' fickleness




By Rhonda Abrams
Gannett News Service

        Customers change their minds. For those of us in business, that's hardly news. We're all faced with clients or customers who order or agree to one thing, then later - whether out of necessity or whim - revise what they want.

        When the change is easy and doesn't cost money, of course, we're happy to oblige. But sometimes those changes disrupt our businesses or entail expenses. What do we do then? Pass the cost along to the customer or eat the expense ourselves? Explain the difficulties or keep quiet?

        The problem, of course, is that often you want to accommodate the customer. After all, you'd like to keep the business. But you've got a business to run, and you don't want customers to take advantage of you.

        So how do you make reasonable accommodations without losing either your shirt or your self-respect?

        Be clear about terms upfront. Often, we're so eager to make a sale that we neglect to mention or underplay any additional costs or change penalties a customer may face. Of course, you don't want to mention extra fees first thing, but before the customer signs on the dotted line, make certain he or she understands the complete terms.

        Get it in writing. You can avoid some misunderstandings if you have a written agreement: a contract, a purchase order, a signed proposal. But don't depend on the client to read the small print. Make sure you clearly point out the penalties for changes, if any. If it's not your practice to ask for a signed agreement (and it should be), then send the customer an e-mail or letter confirming the terms of your oral agreement.

        Explain limits on special deals. Let's say you're able to offer a customer a lower price because it's your slow season or you got a particularly good deal on raw materials or supplies. Don't keep the reason for your special deal a secret. Let the customer know the reason and when the offer expires. That will keep him or her from demanding the same prices months later.

        Always consider the long-term cost/benefit. Bend over backward to accommodate an established, long-term good customer. Even if you have to suffer a financial loss on one order, it's worth it to keep the relationship. Face it, that's a cost of doing business. Of course, it's just good sense to let the customer know you're absorbing the costs; hopefully, the customer will appreciate your gesture.

        Don't set the wrong precedent. Be particularly careful with new customers or new staff members of existing customers. Don't let your eagerness to develop an ongoing account allow you to set patterns that will be difficult to break. If you do accommodate their changes without cost, be very specific that next time there will be a charge.

        Develop clear change policies. If you're in a business where customers are likely to make alterations or revisions, devise a clear policy relating to those changes, such as what kinds of alterations will be charged for and which will be free. That makes it easier both to accommodate customers and to charge them when they make changes outside the policy.

        Rhonda Abrams is the author of “The Successful Business Organizer,” “Wear Clean Underwear,” and “The Successful Business Plan: Secrets & Strategies.” To receive Rhonda's free business tips newsletter, register at www.RhondaOnline.com

       



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