The Business Coach: The Cost Of Doing Business

 

By: Santi Chacon
Business Coach

Alright so you are attempting to have that conversation again with Bob regarding his changing needs. No matter how much you have tried to make that personal connection and add value to Robert, he has been indifferent and seems to be on the fence about a few things. In your opinion he has a different agenda then he leads on. Reading in between the lines you are convinced he sees your solution as ubiquitous and something that can only be differentiated on price. You know the moment you are not able to meet his needs at commodity prices he will shop elsewhere.

• What are the costs associated with doing business with Bob long-term? 
• How much is your time worth? and how much time does Robert require?
• If you want to make your company profitable (long-term implication) can you afford  to continue to pay Bob's monthly costs (both in time and discounts) with enough profit to justify him as a customer?
• What is Bob paying you to add value?
• Is he paying you less than you pay for him?

 Have you ever heard of firing a customer? 

If a customer is not interested in how you differentiate yourself, your company, and your solution; you are in a losing battle. I would caution you to consider his costs.  Don’t get caught by the Wal-mart effect especially if Bob has the pocket book of a fortune 1000 company. Perhaps it is time to consider an exit strategy.

 

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