As small business owners we are closer to our customers thanmost of the big boys. When the economy took a turn for the worst, we were the
first ones hit with customers cutting costs and calling on us for lower prices. Some of us complied and lowered our rates and some of us took the heat and held on to our pricing. Like everyone else I love a great deal, but as a business owner I realize that there are some areas that shouldn’t use cost as a deciding factor. So when your clients tell you that the cost is the issue, don’t take the bait. I’ve come up with three areas
to help you get around that common complaint.
Know your value
This seems easy enough, but most companies aren’t immediately aware of what makes them worth the cost. For some it’s years of work with prestigious clients, for others it’s going to be specialized knowledge … whatever makes you special to your clients, that’s your value and
you are worth it. The moment you drop your fee is the moment you lose your customer’s faith in your value and ability.
Know your weaknesses
The only thing worse than not knowing why you cost what you do, is not understanding what you can’t do. There are plenty of companies around that claim to fix any solution their customers have, but the reality of the situation is that there are some situations that are going to be out of
your league. By understanding your limitations you create the ability to build partnerships with businesses that fill that gap; those relationships provide you with a road to new markets and new clients.
Be willing to show your worth
Small businesses have always had the luxury of building strong relationships with their customers and in this economy we have to extend
that luxury to building relationships with suppliers as well. Small businesses have to be willing to work together in ways they haven’t had to before to show their customers that they can support their needs. Build your network because there is strength in numbers and the business that can adapt, can survive.