Would you like to buy a Lamborghini for the price of a Honda Civic? Obvious answer, right? So why does a company, who is getting poor service, expect to get better service somewhere else but at the same price?
As the old saying goes, “you get what you pay for”. While in certain situations this may not be the case, I have found over the years that a majority of the time, this holds true.
Being the owner of a service company, I have seen this situation play out far too often. Countless times I have had prospects approach us looking for someone new because their current solution is not working. We go through the process, they love everything they hear, and then it all falls apart when we talk about pricing. It can be extra frustrating when they tell you all along the way how much better this will be and how much value we can bring. Yet, they aren’t willing to pay more?
I am not writing this article just to complain (although I do think I have a valid reason to do so). I am writing to the other business owners who have run into this situation and to hopefully provide some remedies.
First, we need to start by looking in the mirror. Are we educating our prospects on the value of working with us enough that they are willing to pay more for our services? Maybe YOU know you are more valuable but does the person sitting across the table know? It is our job as business owners to educate our clients and clearly explain the value of working with us. We can’t just expect them to see the value because their current solution isn’t providing it. Start by looking in the mirror.
While I think it is okay to point out some of the gaps with their current service provider, I am not a believer in bashing someone else just to land a new client. You will never know all the details around the engagement or what was truly going on. Be careful putting someone else down just to build yourself up, people tend to see through that.
Are there going to be situations where no matter what you say, the client simply refuses to pay more? Absolutely. I would just encourage you to look in the mirror and see if there are ways you can communicate the value better. On the flip side, we need to stop going into a store looking to buy a Lamborghini but bringing enough cash to buy a Civic. I am all for negotiating good deals and saving money, but let’s not be ridiculous.
Have you run into this issue in your business? What have you done to overcome it?