Comments on: Handling price competition by introducing service levels

By: Toni Hunter

Toni Hunter — Wed, 15 Sep 2010 11:34:40 +0000

great advice, but the differentiation needs to be clearly defined and a high level of discipline required to make sure ’silver’ paying clients don’t end up getting a ‘gold’ service and vice versa.

In a personal service industry it is difficult to say ‘no’ to a good or ‘pleasant’ client or to rework the engagement criteria for ad hoc issues, so the boundaries need to be absolute and clearly communicated to the team and to clients.

Thanks for the interesting post.

By: Phil Shipperlee

Phil Shipperlee — Thu, 18 Mar 2010 09:50:52 +0000

I have used this technique to great effect for many years. It all started when I had quoted a fixed price for a “new computer system” and the one remaining competitor had also quoted a fixed price for a “new computer system”. We were about to lose because we were too expensive so I presented the prospect with a menu of the main components that made up our solution along with a break down of cost by component. I got the prospect to ask the competitor to tick which components they were providing and how much they were charging for them which made them look expensive and a bit devious.

Result – we got the business and a long term committed customer becuase we were honest and open.

By: Matthew Newnham

Matthew Newnham — Thu, 18 Mar 2010 09:42:36 +0000

Thanks, Richard. Great advice. I particularly like how this keeps the exchange clean, by reinforcing value exchange without forcing the point.

The same principle should show through on websites – and often doesn’t.