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1. Times are changing, so are newsletters

By the time this year draws to a close, most companies will have such severe email screening systems in place that even legitimate newsletters like this one will be blocked. We will be exploring the viability of publishing this e-newsletter in plain text in the future with links to an html version straight through to our two websites. Please be advised that currently all seminars, public courses and other offerings are regularly updated on our sites, and are easy to locate.

I will also, from July, be offering my newsletter in audio format straight from the site. The newsletter archive has almost 70 articles, all of which are current and relevant. Please go and help yourself.

2. Are you subtracting value when you could be adding value?

*feature article*

(OK, so it's a bit longer than usual. But tell me after you've invested the extra 67 second that it wasn't worth the read?)

Having delivered talks recently throughout Southern Africa and in the UK on customer service, I'm struck by how often the issue of price rears its head, and how it gets in the way of effective service delivery by "hogging the limelight". There's no getting away from the impact of price at the point of sale, in many instances long before your customer gets to the point of sale. There are also many approaches to price. Are you in a volume based bottom end market, or are you in the top segment offering superior quality at a premium?

The extraordinary fact is that the long term impact of the price and discount issue is almost entirely in our own hands and not in the hands of our competitor or customer, as we may be lead to believe. Let me explain:

People will focus on where they are being told to focus, whether it is you or someone else, like your competitor who is doing the telling. So if you focus their attention on price, that's where it will stay. And if you're able to undercut everyone, and you want their attention to stay there, then it will. But if there are benefits to your service other than price, let me assure you of this: People will pay a premium, sometimes a substantial one - for value adds that matter to them. The motor car industry is testimony to this truth.

So, what are some of the other things that may impact a buying decision?

1. A track record of delivery on time, every time. How about early?
2. Friendly, informed (properly trained) staff to deal with - people who look you in the eye!
3. Efficient support and back up.
4. Look and feel of your product.
5. Easy access to useful resources - website, offices, shop service centre.
6. Ambience of your show facilities.
7. Regular customer service contact - for instance a dedicated person dealing with your account.
8. Being informed of new industry developments by newsletter, email, telephone call or sms.
9. Little extra's - a gift, a lift back to your office, a chocolate on your pillow, a rose for you or your partner as you leave the restaurant.

..and there are others. We haven't even gone in to things like reliability, back-up, access to past records, consistency and so on.

Businesses spend large amounts of time and energy addressing an old issue which is here to stay - that of pricing and maintaining profitable margins. There are many ways of squeezing a margin, but once you have done all the squeezing you can, there's no juice left in the orange, and little place for any value add - unless the exchange rate turns in your favour!

Discounting, therefore, is a survival mechanism and should really only be used to clear out old stock to make way for new lines. It is relevant to note that every time you have a sale, you effectively discredit the integrity of your list price.

So, how do we get our customers focus away from price and on to the many other important benefits that your offering brings with it? By habitually adding value instead of subtracting it.

Take a tough look at your business. An easy way to start is to survey your key customers and ascertain their main reasons for doing business with you! Then get your staff together and brainstorm any way they can think of to focus your client's attention on their key hot buttons, away from price and on to the value adds that you currently have. Brainstorm any other potential value adds. Maybe even think of attractive (not necessarily expensive) enhancements to add to your current offerings - do not discard any of the ideas initially, rather encourage participation. Then select the best 2 or 3 ideas and establish ways to implement them immediately. You can consider the other ideas later.

Example: The last car I bought, the salesman steered me away from the subject of a discount. He did, however, organize me a hard cover for my spare wheel and presented me with an attractive key ring with the keys on handover. These things cost a fraction of any discount I may have pushed for, but I left with the feeling that I'd scored, and he didn't have to discount to achieve it. The salesman succeeded in adding value rather than subtracting it.

If a repeat customer is continually harassing you for tighter margins, rebates or discounts, you should be aware that you have not succeeded in establishing the loyalty of that client. Ask yourself why this customer is coming to you in the first place - there must be more of an attraction than just the probability of a competitive price? You establish loyalty by becoming, in the client's mind, a "value adder", or better still, a "business partner". As your belief in the value of your total offering increases and your focus moves away from price to things that really matter - like the benefits of your product and your service, so will your customer's focus shift as well.

Customers understand that a low price is a high premium to pay for poor service, aggravation and an inferior product. They know, as do you, that there's more to a purchasing decision than price. And I'm sure that, like me, you'd rather pay a little more but know that you're buying quality, reliability and perhaps a little extra. Sometimes we just need a little reminding. We need to be told where to look.

It all seems so clear to us when we give someone else advice - it's just a bit tougher when it comes to advising ourselves! Try looking at your business from the outside as an observer. You may save a few bob on consulting fees, and realize that protecting your margins long-term is much simpler than you think!

You may also acknowledge that people see what they're looking at. So, as you would divert a child's attention from a sweet before supper time, so you can divert your customers attention away from price. Soon he'll get used to looking at the real benefits of using your products and services.

Price, you see, is really just an excuse.

Paul du Toit.