I just got back from having coffee with a good friend who I consider to be a pretty savvy businessman.  During our conversation he asked me an interesting question:

"Are you seeing that businesses are accepting anyone who walks through the door as a customer?" 

I wasn’t sure I understood the question and asked him to clarify. 

He said, "Are businesses being discerning about who they take on as a client or customer, or are they working with any and all prospects?"

I’m a good coach, so of course I responded this way: "Hmmmmm.  Good question.  What are you doing?"

His response showed a lot of thought.  His business sells a commodity and there’s lots of competition.  And yet his company is still  discerning about who they accept as a customer.  They don’t discount their fees and they don’t take on a customer who they believe will be a problem customer later. 

He said they may get fewer customers, but they are having very little customer turnover.  Their customers are staying with them. 

He said he has people willing to pay his fee, which is sometimes higher than the competition, because his prospects have been impressed with his way of doing business and his belief in the value of what his company offers. 

He also said it was especially satisfying for him when a prospect initially chose a competitor and later came back to him because they didn’t get what they expected from the other company.

The moral is: 

• Know the value of what you offer
• Be fair in your pricing
• Be willing to stand up for yourself and your company

Written by Philip Cohen