i have proof than service/quality beats price

[huggytree]

This is more of a pep talk to all of you who are thinking of slashing prices to stay in business.

i had 15 builders that i worked for at this time last year....i lost 6 of them to cheaper plumbers that spring(i was dead slow last Feb/March because of this)....3 of the 6 have come back to me!...the grass wasnt greener....the 3rd one just called today with a project....nothing makes me smile more than a satisfied customer coming back..

i hear stories of missed schedules, prices increasing slowly on each new job, talking too much with customers...

i have not lowered my prices unlike many of the local subs have...i do spend more time explaining why im more expensive and why low price is a bad idea.

I take it personally every time i lose a customer...im usually down in the dumps for a couple of days, but ive never feel too bad if its over price...its the only reason i want to ever lose a customer.

Quality & Service will always beat price in my type of business.

[vangogh]

Agreed. People shop on value and not price. When people are looking for the lowest cost it's because they don't see the value in something. That's not necessarily bad either. One person buys a Ferrari. The nest just wants to get across town reliably and buys a Honda.

One part of my business that makes me the proudest is how much repeat business I get. Most people I've done work for have come back to me for more work later. Some may have tried another designer/developer, but most still come back.

Some people will always shop on price alone, but the majority shop for value.

[seolman]

Couldn't agree more. Whenever a customer says "I can get it cheaper over there" I always say "go over there". People who don't recognize value deserve what they get. We have a lot of loyal customers too. People who've been with us for years and many like yours Huggy that left and came back

[KristineS]

I'm a firm believer that quality and service are far more important than price. I've seen people leave for price and then come back a few months later because they weren't getting deliveries and service was bad. We just smile and take them back.

Repeat business is a great hallmark of how well you're doing. Plus repeat customers cost your business much less than going out and finding new customers.

I think it's great that you're sticking to your guns, Huggy. Keep it up, it's obviously working.

[billbenson]

It's not just quality as well. If a customer calls for price and I can email them with a quote while we are talking on the phone, I usually close the deal. This includes purchasing agents. Its just plain people get lazy. Every few weeks, someone will ask for a discount. I inflate prices so I can discount at normal margins. They rarely ask for a discount though.

I guess you could say that getting a quote in the customers hands asap is good service. I'd say it falls more in the area of good salesmanship though.

I do get RFQ's that go out to the world. I put those low on the priority list because I don't discount them and we almost never get them.

My stuff is all b2b though, which is different than consumer. I know I price shop as a consumer.

[greenoak]

i totally agreee on plumbing and most any other service...i would never drop a good service guy for a 20% or 30% difference in price.....maybe it would tempt me if the cheaper guy was highly recommended by several people, but if someone does a good job and is reasonable i dont price shop for service.....



but for retail its another story..as a buyer i have to look at price...i want to be competitive/realistic.....i lose lots of sales becausue they can get the same thing on line or at the big boxes cheaper than i can provide.....obvious to say get different stuff....but i need popular middle of the road things too....and way too many of the companies i used to buy from now sell online themselves, or sell the same stuff cheaper to bigger places....so im dropping some things the customers think i would have...but they want it at a price i cant have...

my thing is great value at a fair nice reasonable price..and we have survived after lots of other higher priced places have folded.... its so easy to price too high in antiques...
..i dont want to be the highest price around....this has worked for us for a long time and has attracted some real well heeled buyers as well as average home owners....... its a fine line...ive found rich people really care about their money.lol.!!!.and can appreciate value and a good deal at the same time...
what messes us up is starting with one price thats on the edge, and slowly slipping into a smaller and smaller margin.and after ive already comitted to the project or line or whatever...
.

[Blessed]

This is one lesson my dad taught me well - you get what you pay for! It doesn't mean you have to use the most expensive plumber or buy the fanciest car or etc... but you do have to do your research first and buy second - that way you know what you are getting and when quality and service really matter you can spend a little extra to get it.

[huggytree]

what i find is people will buy the most expensive fixtures and hire the cheapest plumber to install it...they see value in physical items, but no value in labor...a plumber is a plumber to them...i have swayed some of these type of customers after explaining the differences...

[Aaron Hats]

I hate that nearly every morning show on tv, it seems at least once a week, tells people to ask for a discount in any and every store they walk into. It happens all the time that a customer will ask for a discount in our store. My response varies widely depending on the mood I'm in. As an example, yesterday a gentleman brought a hat to the checkout. He asked if it was on sale. With a smile on my face I said "yes, it's on sale for $68". He knew that $68 was the price on the price tag so he said "how about $60?". I said "how about $69?". He smiled then handed me his Discover card. Most people are understanding when I tell them no discounts but a few will think they're entitled to a discount and get upset. That's when I tell them Walmart is two miles down the road.

[billbenson]

Gee, I don't know; or I gotta talk to my boss also works well.