Don’t Cave on Price
In 2008, I heard someone give a presentation about email marketing. The woman was an executive from a Boston-based company called Constant Contact. Since then, I have sent easily hundreds of thousands of emails using this service.
But, no more.
In a shift directed and suggested by my daughter/marketing department, we are going all-in on LinkedIn. Moving forward, my Monday Short Attention Span Sales Tips, blog, and other sales content will be distributed using that social media platform.
Buh-bye Constant Contact!
So, I called and canceled and, lo and behold, they offered me a 33% discount if I stayed. This approach was familiar to me.
I used to play a game every year with those two companies. Because I knew they would fold like a cheap tent if I canceled, I would call and ask for the cancellation department whenever the term of my service plan expired. There, someone would greet me, thank me for my business, and immediately offer some ridiculously discounted price in order to keep me in the fold.
Year after year, it worked.
One year, however, when I called the Wall Street Journal, they simply canceled me without a counter offer. I was shocked and asked the Agent why that was. He replied something like, “We believe we are worth every dollar and have decided not to discount our price when people decide to quit. In short, we’re not playing that game anymore.“
XM Radio, on the other hand, did their usual, “Oh, I just found this discount you can take advantage of…“ BS and I stayed with them.
As a 14 year customer, I have obviously received great value from Constant Contact. It’s not always been perfect and their gratuitous, “change for the sake of change” adjustments they made to their website were frustrating and so I was expecting them to remind me of that instead of doing what they did and immediately offer a 33% discount.
The Wall Street Journal raises prices every year and yet I have not called them back looking for the cancellation discount since they stood their ground. I agree: They are worth the price.
Are you picking up what I’m putting down here?
You always have the option of lowering your price, however it should be your last resort, not your knee-jerk reaction. Make an effort to substantiate the cost you have put out there. Even if it’s just one, “Here’s why you want to do business with me“ response, you have a chance of walking away with that additional profit.
To do otherwise sets a precedent you will regret.
The Sales Vault is a subscription-based website for sales people and selling owners throughout the graphic arts. Visit SalesVault.pro for more info or call Bill Farquharson at 781-934-7036
Bill Farquharson is a respected industry expert and highly sought after speaker known for his energetic and entertaining presentations. Bill engages his audiences with wit and wisdom earned as a 40-year print sales veteran while teaching new ideas for solving classic sales challenges. Email him at firstname.lastname@example.org or call (781) 934-7036. Bill’s two books, The 25 Best Print Sales Tips Ever and Who’s Making Money at Digital/Inkjet Printing…and How? as well as information on his new subscription-based website, The Sales Vault, are available at salesvault.pro.