March 8, 2010 by Robin Dickinson | 89 views | Comments (7)
BLACK CHAIR: Business Mentoring TV
EPISODE 5:
This episode of Black Chair focuses on a critical distinction that will help you to make sure that your profit is as high as possible for as long as possible.
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7 Responses to this post
March 8, 2010 at 12:06 pm |
I can see the wisdom in that. I think all our rates are mates rates at the moment:)
March 8, 2010 at 5:59 pm |
Thanks Annabel, I appreciate your feedback.
Here’s to getting those ‘mates rates’ upgraded to premium rates.
Best, Robin
March 8, 2010 at 2:50 pm |
Hi Robin
I get where you’re coming from with this. I would have to ask, what about someone who is a lifetime customer and also a friend, do you give a discount as a reward for being a long standing customer?
March 8, 2010 at 3:35 pm |
Great question, Steve. My longest client relationships are nearly twenty years old – and still going. In that time I have never discounted.
That said, those longer relationships have incredible mutual value. For the clients, they know my pricing is fair and reflects top value for them (otherwise they wouldn’t keep paying).
More than that – they know, based on my track record, that they can rely on me to deliver an outstanding result, every time.
The discussion never goes to discounting, but is continually focused on how I can keep raising the bar and deliver to them ever-higher value for their investment e.g. better answers, more inspirational advice, stronger strategies, more powerful tactics, sharper planning tools etc.
As a 100% referral business, I never want people contacting me because they heard of a friend that got a good deal. When the phone rings, I want to know that the referral is from a full-fee client. It far more profitable that way!
Great to see your comment, Steve.
Love to discuss this further with you.
Best, Robin
March 8, 2010 at 4:46 pm |
I love your quick Black Chair thoughts. Like Annabel I see your logic, I’m just not sure I can practically agree.
Probably because I do make friends with my business colleagues, and find these to be beneficial. I do think you can separate business from friendship. If you don’t have an expectation for “mates rates” or favours from your contacts (suppliers) and set the expectation that there are some areas you also don’t give “mates rates.”
As a manager it was important to separate performance reviews from personal relationships. But you can manage that by discussing the metrics. Some of my closest friends are people I’ve managed in the past, and who’ve managed me in the past. It’s all just part of our mixed up world.
Thoughts?
March 8, 2010 at 6:11 pm |
Thanks for your feedback and encouragement, Roger.
The key here is to have very clear boundaries and shared expectations regarding business relationships. Without these, it can indeed get very murky – especially when personal friendships and business relationships get mixed together.
Very early on in my career I had an experience where I had become great personal friends with a colleague – until I got promoted and my friend was now reporting to me. This situation really tested my understanding of loyalty to company vs. loyalty to friend. It was a very tough lesson.
Thanks for sharing your experience and opinion, Rog.
Best to you.
Robin
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