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Shaun @ Tru6's Avatar
 
Join Date: Dec 2001
Location: Cambridge, MA
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Is this bad business?

Just had a new customer in TX call up, she sold out of her flannel shirts fast, called to reorder and added the matching pull-up pants. She wanted 2 of each size in each color across our whole size range. It would be a ton of pants and I know she won't be able to sell them all so I told her 1s across would be better and she could always reorder if she needed.

She's a new store and new store owners always over-order. But it's very possible I left a lot of $ on the table by "saving the customer".

Sometimes I wonder if this is the right thing to do.

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Old 11-13-2014, 08:55 AM
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I'm not a business owner, but my thought is that the relationship with the customer is worth more in the long run than the money that could have been made on this one order.
Old 11-13-2014, 09:02 AM
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The Unsettler
 
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Nope, not bad business.

Depending on what return / markdown policies you have it is smart business.

BTW, expect more flannel orders.

Was 90's here over the weekend, now in the 30's. Our Fall was on Tuesday from around 11:30-4:00. We may even get snow this weekend.
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Old 11-13-2014, 09:07 AM
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Time will tell for that particular customer.

Most of the time when you save a customer grief and/or money it comes back to you so you did the right thing from a customer service POV.

But in other scenarios it doesn't reap any dividends.

Karma can be a force multiplier in either direction!
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Old 11-13-2014, 09:07 AM
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Join Date: Jan 2004
Location: Texas
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you did the right thing...
my wrench...
when I expressed thanks for fixing something while in there.....
for 'free'...
if you enjoy the car & our service...
in the long run we always win..
you stay in the car & come back....
you refer folks ..

Rika
Old 11-13-2014, 09:11 AM
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You did the right thing. It is better she sells thru than to load her up with inventory that she might not sell. If it doesn't sell and she can't pay you don't collect or you get a percentage on what your owed.
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Old 11-13-2014, 09:21 AM
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I will add, anytime a business advises me in a way that means LESS money for them, they instantly earn my trust and appreciation. I will always give my business to people I feel I can trust.
Old 11-13-2014, 09:24 AM
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Thanks, it's good to know I do some things right now and again. Sometimes it's hard to know.
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Old 11-13-2014, 09:32 AM
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Shaun, as long as you always do the right thing, you will never get too far off track
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Old 11-13-2014, 09:57 AM
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Shun, I think its the right thing to do. Difficult for sales people to tune it back. I think if ou help her out on this, you will have her as a long time customer.
Old 11-13-2014, 03:02 PM
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Yep, right thing. I get OEM customers who want to order just one shy of the price break point. I always let them know they'll save another 5% with one more. Basically, they get one more for for $50 less, if they go from 20 pieces to 21 pieces.
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Old 11-13-2014, 06:48 PM
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My job in sales is to tell a customer what is right for THEM. Of course, I rely on repeat customers . . .

You did the right thing.

Ian
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Old 11-13-2014, 07:03 PM
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When I was a consultant I'd get calls from clients and put the time on the monthly invoice as a phone call with a big notation of "No Charge". I wanted to let them know they could call me anytime for free, it just might mean more chargeable work down the road. An old Boss once told me "You give good clients everything, because the bad clients take away from you taking care of the good clients".

Before I started working for Disney, I had besides Disney; Paramount, Warner Bros. Universal, Dreamworks, Fox, Sony, CBS, ABC and NBC as my clients. Plus other studios and other industries. I killed them with services. My goal was to make it so easy to use me that they didn't want to do anything else. Little things like government reporting requirements, I'd send them two copies, theirs and the agencies with tabs like "Sign here", addressed envelopes to the agency. All they had to do was sign, drop in the envelope and stick in their office mail. At one point, my Warner Bros. client showed me his corporate Org Chart. I was his Environmental, Health and Safety Department. And I was a consultant. "Calls at 9PM,"Hugh, can you be here at 4AM for a fall protection/Lockout out/Tag out/forklift course?" "Of course I can be there".

Last edited by Hugh R; 11-13-2014 at 08:09 PM..
Old 11-13-2014, 07:55 PM
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I had this one particular account back when I had a service business.
My field boss made a big mistake ...I told the client that I'd take care of it - cost me $5,600.
I kept that particular account for another 15 yrs.
It originated @ $47.000/yr. with a 8% added each year.
They never reviewed that contract - never went out for a competitive bid annually...as most clients did in that business.
They loved it!!! I could do no wrong after that - according to them.
And I gathered a few other accounts via word-of-mouth as a result.
You just can't lose doing the honorable thing...most of the time, that is.
Besides that, you sleep better...
I did.

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Old 11-13-2014, 08:25 PM
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