It seems that lately everyone is busy but when I speak to customers, suppliers, friends etc its always the same thing busy chasing existing business Its true that everyone is looking for a bargain at the moment and who can blame them, there's never been a better time to buy something whether its a car, furniture, TV or indeed software or services which my own company provides. Prices are coming down in all areas. I had a discussion last week with the provider of our insurances and he said that he is twice as busy as last year providing quotes for people. In that industry the rise of price comparison sites have meant that people are shopping simply on price now and not considering the customer service angle at all. Personally as far as possible I prefer to do business with someone I know and trust and can call on if there is a problem. Usually I find that because I know and trust them, there rarely is a problem! Wonder if there is a connection there? Is our culture now so obsessed by price and trying to get things as cheaply as possible? I hope not, I still seek good customer service and want to be looked after by my suppliers. I want to know that when times are tough they are there to help out. For that I am willing to pay a little extra, but not too much!
A customer of ours in the waste industry has seen the price of waste paper, plastics etc drop dramatically in recent months and that is partly due to the influx of new companies to the market and the price has subsequently dropped. I read yesterday that some waste companies are going under because of this. Now there's nothing wrong with good old fashioned competition and new companies coming into an established market is a good thing. As those companies coming in have a low or no cost base they can keep their prices low. However there is no substitute for experience and often you have to pay for that experience. For example if I was purchasing a flight across the Atlantic I would much rather pay extra for a provider who has done it many times before than someone who set up last month - no matter what price! As business people we are inherently risk takers but that's a risk too far!
Finally, making the customer experience as pleasurable as possible is very important. Make it as easy as possible to work with you and to buy from you so that people return as often as possible. Offer as many touch points as possible, face to face, phone, web site, blog, facebook etc the list is endless these days.
So service and experience are very important in my book buts that's not to say that you can charge what you want. Keep your prices reasonable and concentrate on service and experience and I believe that you will win more often than not!
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