How to Decide to Keep or Lose a Customer
Suzanne asks:
“How do I tell a customer that the gift baskets she wants for a low price cost a lot more for me to make? I don’t want to lose her, but I don’t know what to say.“
This person may have already visited retailers in your local area and found that their prices are not to her liking, so she’s now asking you to make what retailers already know is not profitable.
I’m guessing, of course, but some potential customers approach us with requests that are simply impossible to complete.
A woman once asked me to make a large gift basket and charge her a small basket price, plus she wanted 30 days to pay, and this was her first order!
How did I handle it? I explained that while I wasn’t able to fulfill her requests due to my pricing structure, I was happy to recommend her to other designers who might be more accommodating.
Those other designers turned her down as well. She wanted too much for too little, and all of us found the words to turn down her request since staying in business is a top priority when you decide to become an entrepreneur.
You have a choice to either:
- Inform the customer that you are unable to produce her preferred gift baskets at the cost she wants to pay,
- Provide her with alternative styles from your design inventory, or
- Make the gift baskets for her and take a loss.
If the first option is best, the words are easy to say. Do not allow emotion to get in the way; you’re making a business decision based on your desire to stay in business.
If the second option is best, inform the customer about the value and satisfaction other buyers have experienced with those particular styles.
If the third option is best, make the gift baskets, but be ready for additional orders from the customer that will keep you profitless.
Which is your choice?
