Think about a negotiation resulting in the best profit producing contract ever awarded. You worked on your presentation – tweaked it – made your pitch like no other!
A dream come true. The customer has agreed to pay far more than industry standards. WOW, YOU NAILED IT! You won big.
That’s great, right?
Maybe not!
What are the potential costs of those nice margins?
- Your contract: Did you over price, or add value? If you simply overcharged and the customer becomes aware – (and they will), you lose.
- Your team: If the client IS aware of the higher cost, what are their expectations? Are they clear? Do you have well thought out processes and the the right team to execute? Did you price in the tools needed to succeed? What happens if the pressure of unreasonable promises create turnover of your highly valued employees? You lose.
- Your good name: Bad news travels fast. Social media, industry gatherings, general networking, reference calls, employee chit-chat, and more. Will you be capable of attracting great staff moving forward? How confident will your sales team present with a well-earned ‘rip off’ reputation? Again, you lose
This is not an article about margins, but rather of sustainable business relationships. How to win over the long term. Winning requires every party to walk away from the table feeling good about the deal. Further, trust that you have their best interest at heart!
Hey, I get it, decisions are not always easy and can be quite stressful. When making difficult decisions it’s so easy to have a ‘what’s in it for me’ mentality. We don’t mean to but can be so focused on our own ‘stuff’ that we forget about the resources and people that it takes to actually become a success.
But what is a success? How is it measured, and how do we get there?
The three critical parties to focus on in in any service industry are 1) our customers, 2) our employees, and 3) our company. Three parties – Three wins! So very important.
Know what your team is selling and, that your customers and team are a part of the win.
If you do choose to earn larger margins, great! Create a culture that can’t be compared to your competition. A service or product that is something special. What can you do consistently and over time that is better (or easier – bigger – smaller – faster – prettier – fun’er (smile). How can you attract new customers by an excellent reputation? How can you become well known among prospective employees as the best place to work; reduce employee turnover; control hiring costs; and reduce mismatches among new hires?
Create the highest level of customer and employee trust generating increased (and sustainable) profitability.
Three parties, three wins, very powerful.
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Parone Group is a support system for executives and their teams. From creating superior service and a high-value culture to connecting you to resources for various business needs, we partner with you to determine very precisely what you want and need vs. what you have.
Next, we identify and walk you through the processes, tools, and resources required to pull it all together and work with you as much or little as you need or request.
Consider Parone Group your one stop shop. We save valuable time and provide the solutions, resources, and support that help maximize performance & profitability.
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