I just got fired.
Wow. I didn't see that one coming. This will mark the first time a client has told me he would no longer be using my services since I started my own company six years ago. So what could I have done differently in dealing with this customer that could have saved our future business relationship?
Pondering this loss got me thinking about why this particular client came to us seeking service in the first place. A few years ago, he hired us to fix an ongoing problem he was having with tripping circuit breakers. The client was frustrated because the fix-it guys he was already paying weren't really fixing the problem nor could he communicate with them as they didn't speak English. We came in, assessed the problem, discussed it with him, and fixed it. After the successful resolution of that situation, he asked us to prepare a proposal for a much larger project. When we did, the sticker shock shook him up as we were quite a bit higher in our bid than the previous company had been. Deciding we were knowledgeable, courteous, communicative, and timely, he thought it would be worth the extra money to hire us for the job. The value we offered him was greater than those he had previously hired.
What makes a company more expensive than the next guy? Don't we do the same job?
Many things should be taken into consideration when hiring a contractor or service company to do work. How much they charge for the work is only a small part of the total package. Value should be considered over price—and value can be a subjective concept.
There are many different things that contribute to the greater value one company may hold over another in any given industry. Education and licensing are obviously necessary but don't come cheap. The cost of extended education and experience must undoubtedly be passed on to the customer, but that intangible may be difficult for the customer to appreciate—until he comes across sub-par work. Insurance costs are up for everyone, and most reputable businesses must carry a goodly amount of liability to protect themselves and the customer's property in the event of accident. Quality materials are an investment that some companies wish to make to see better results in the work they do—and better made, longer lasting widgets cost more, an expense passed on to the customer. Quality employees that communicate well and respect both employers and customers cost quite a bit more than minimum wage, and those hours can really add up—plus taxes and benefits. The end user may pay more for all of these things but has the right to expect top-notch service and superior results when some of those costly factors are important to the success of the project. The customer has to weigh the value of the well-trained, highly-regarded company that charges more over the fly-by-night outfit that may take your money and disappear before completion or the next break down.
When I asked the client that fired me why he no longer wanted to use us—after several years of service—he told me that we charged too much. Although he had once seen the value we offered after his bad experience in the beginning of our relationship, the memory has faded, and he was ready to go back to looking for a "cheaper" way.
We will continue to do what we have always tried to do: offer a greater value for the dollars spent. We advise our potential clients that you can have excellence or you can have cheap. It is rare to get both in the same package. Those companies who choose to take the extra steps to be excellent at their craft and give great service will probably charge more than those who don't bother. Clients get to choose what they value—and will usually get what they pay for.