I recently changed cell phone services. I’d been with AT&T for years – since I got my first cell phone over 10 years ago. I’m loyal, but I’m not blind, so I went looking for better rates.
It turns out that Sprint could give me the exact same service that AT&T had been supplying, for just a hair over half of what I’d been paying. I’m not someone who buys strictly on price – I evaluate a lot of factors before making a significant purchase. So I called AT&T’s customer service department and asked for a lower rate. They wanted to know why I was considering switching.
“Sprint is going to charge me half of what you do for the same service.”
“I’m sorry to hear that. I hope our service has been satisfactory, and if there’s anything we can do to help with the transition please let us know.”
No begging me not to go, no attempt to lower their pricing to match what someone else was going to charge me. No offers of extra goodies to entice me to stay. While switching over to another carrier was going to be a pain (easier than I imagined, truth be told), I simply say this –
Learn from AT&T’s lesson, and don’t give in to the price shoppers! I recommend all my clients keep their prices higher than their competitors’. Why? So you can afford to give better service, and so that – should the occasion arise where you want to give low-cost or no-cost services – you can afford to do it without going out of business.
Price shoppers will always be out there, looking to snag a deal. You cannot remove them from the business environment, but you can remove them from your equation. They simply are not worth your time. Literally. You will never be able to stay in business if you cater to price shoppers. If you offer them a low-ball price, they’ll want a discount on top of that. If they find a lower price elsewhere, they’ll leave you and go there instead. I also find that people who insist on the lowest price also want the most personal service.
So, am I disappointed that AT&T didn’t try to bribe me into staying? Honestly, yes. On a personal level, you’d think they’d want me to stay. But they knew from past experience, and a serious attention to profit margins, that a half-price customer just isn’t worth it. From a business standpoint, I applaud them for knowing the kind of clients they want, and the price point that type of client is willing to pay. That’s their pool of prospects, and everyone else isn’t.
Bypass the cheapskates – sell to the right people at the right price.