Tell the squeaky wheel to kiss off

One thing that really maddened me when I was in sales was seeing how every company I worked for gave problem customers preferential treatment. They lived up to the saying, "The squeaky wheel gets the grease."

Not in my house. My company gets calls all day long from people who want extra guarantees, names and numbers of references, previews of my book, etc etc before they buy. Instead of catering to these people, my customer service reps are instructed to say, "I'm sorry, but we cannot provide that. If you feel that way then don't buy it." Why? Because I would lose money having my staff spend time on these people.

When I sold telephone systems there were those customers who paid full price and those who drove hard bargains and wound up negotiating the price very low. Guess what - the customers who paid full price had my full attention whenever they needed help. I was always happy to drive out to their offices to assist them. Those who got deep discounts were simply told to call the 800 number. Not my job, sorry.

You get what you pay for in this world. My favorite business author, Robert Kiyosaki, points out that those who drive hard bargains and negotiate favorable discounts usually aren't smart businesspeople at all. They're just plain cheap. The excellent business book "The 48 Laws Of Power" points out that it is wise to pay full price because in addition to the product itself it buys you the respect and full assistance of those who sold to you.

The bottom line here is not to waste your time on "squeaky wheels" who demand more of your time and attention than they deserve. Save that for your paying customers. If you spend endless amounts of time on a hardcore negotiator, just remember that while you're arguing with this prospect over price, your competitors are out selling to the good prospects you really want!

Comments

[Frank Rumbauskas]

I have to have my staff turn these people away simply because there isn't enough profit in a $69 product to justify our time attempting to "close" them. I could understand if someone had questions about a $500 product or seminar - in that case there would be enough profit involved to dedicate time to selling them - but not for something costing only $69.

In addition, early on when we did provide references and answer lots of questions, we found that the refund rate with these people was excessive and each refund costs us about $30 after all is said and done. With that in mind it's a good business decision to simply ask them not to buy. Right now my refund rate is well below 1% and I'd like to keep it there.

[Jim Logan]

"Not in my house. My company gets calls all day long from people who want extra guarantees, names and numbers of references, previews of my book, etc etc before they buy. Instead of catering to these people, my customer service reps are instructed to say, "I'm sorry, but we cannot provide that. If you feel that way then don't buy it." Why? Because I would lose money having my staff spend time on these people."

I understand the point you are making however, something to remain mindful of is often these types of requests (extra guarantees, names and numbers of references, previews of my book, etc.) are made from a customer looking for reasons to believe in your offer. Often these requests aren't made from a "cheap" prospect, rather they are made from a prospect needing more reasons to beleive you can deliver on the promised benftit(s) you offer.

That withstanding, your point is accurate...there are some prospects that are not not in your longterm benefit of being a customer.

[Steve Crothers]

Great comments Frank.

This reminds me of a former executive search trainer I had. He said that when a prospect asked for a reduced fee, longer guarantee period, etc. his response would be "I can certainly do that. Now choose which part of my service you would like me to eliminate."