What to do when a long time customer uses a competitor

[john1]

Hey guys, I went to dinner tonight and was on my way back and happened to go by a long time customers of 6 years. I was supposed to do a 10x18' backlit sign face on panaflex and it's already been done.

I found out by someone who works there that a new shop who opened up in town about 2 years ago did it and about $250 more than what i quoted. They actually had a issue with it as the guy apparently didn't tighten the banner material on the edges enough and it was buckling and when they called the guy to report the issue he refused to come fix it.

It really makes me upset that someone you have a relationship with for over half a decade can pull a job out from under you when they have said to your face your doing the job. I know i won't go out of business due to this but it really makes me think twice about continuing any business with them if they are pulling this stuff. I looked at my quickbooks stats on them and it's about $200 a month if i choose to decline business from them.

Do you think i should decline future work with them or keep on keeping on with them but have that nasty taste in the back of my mouth?

 

[signage]

No don't refuse work just raise your price! Show them how loyalty works both ways.

 

[James Burke]

Continue to serve their needs but keep them on a short leash. Watch for ways the other sign guy screws up and then look for ways to improve service in the light of his mistakes.

Anymore, loyalty is not just a one time thing. It must be earned anew...each time.

JB

 

[Dakotagrafx]

yup you can raise your price and drive him away after he just found out the other guy is not a stand up fellow - not fixing problems - and lose his respect altogether or you can continue with business as usual as he has learned a valuable lesson and solidify your relationship

 

[qmr55]

yup you can raise your price and drive him away after he just found out the other guy is not a stand up fellow - not fixing problems - and lose his respect altogether or you can continue with business as usual as he has learned a valuable lesson and solidify your relationship

+1

 

[Speedsterbeast]

First. I would be wary that the third hand info on the price is accurate.
Second. A "relationship" in business is not monogamous. They always have other options.
Third. Refusing work in the future. Really? Why?
Fourth. If you are that sensitive about it. Stop by and see the client. Tell him you noticed the sign and ask him/her why they went somewhere else. There's nothing wrong with telling someone you really want their business, and asking for feedback on how to get it, or get it back.
But again, I would forget about the pricing you heard about and start a dialogue.

 

[john1]

First. I would be wary that the third hand info on the price is accurate.
Second. A "relationship" in business is not monogamous. They always have other options.
Third. Refusing work in the future. Really? Why?
Fourth. If you are that sensitive about it. Stop by and see the client. Tell him you noticed the sign and ask him/her why they went somewhere else. There's nothing wrong with telling someone you really want their business, and asking for feedback on how to get it, or get it back.
But again, I would forget about the pricing you heard about and start a dialogue.

The guy seen the invoice so i know it was more than i quoted originally because the employee told me the number.

I don't want to be the guy who really seems by the balls to get their business, Hell for them only giving me a a few hundred a month i will keep my head up and decline any business with them no problem because what was done isn't right in my book.

How can businesses grow if someone isn't loyal to people who treat them right? I use them whenever i am in need of their services so i had imagined we had a great business relationship. It's a auto repair shop so i don't use them as often as they use me cause i typically do replacement graphics on their customer cars.

How would you get business back if they already made the purchase for the sign face? You can't. This was likely their biggest job they needed as it was in the $1500 range and the other is only a few hundred. That's why it was important i get this job from them because it was a good size for my small shop.

 

[Finishline Signs]

Some of my most loyal customers are the one who tried someone else only to get poor quality service and products. Yes I was disappointed when I noticed that a customer went some where else but it feels great when they came back becasue of our quality and service. Most of them even tell me about their experience with the other shop. I would definitly not turn down any work from them.

 

[Mosh]

The best thing is to act like you don't know or care. Rise above this. I know it can seem personal, but rise above it and you will be far better off. The old Mosh would have banned the customer (and/or got put in jail again), but the new Mosh is all about forgiving. Forgive, but DO NOT forget. Tell them your thoughts and you will feel much better adn the air will be cleansed.

 

[premiercolour]

Just my .02. Things happen for a reason. Sometimes we think of others but instead, have you thought of in any part that you did that drove them away? I am in my 30s and always trusted people. But after people promising i'll be using your ink for a long long time. I'll use your damper, pump whatever. They just switch to another person.

+1 speedsterbeast. A "relationship" in business is not monogamous. They always have other options.

If you are asking me, i would go to their shop and ask if anything that they might need? $200 isn't much but still. It helps. I still call customers and left a voice mail is there anything that I can do for you. Hey, it all depends. You do what you go to do. You feel not liking to sell them. Don't sell them.

 

[Techman]

You are in business to make a profit.
No matter how personal it gets. Nothing is personal in business.
No one owes any one anything.
Always raise your prices a few percent every year. Always.
He wants you to do his work.. Take the order, take the check and cash it.
Never get involved with why he picked the "other guy" All to often we do not know the real reason why. And it is irrelevant.
Develop a business model that does not depend on all old customers to keep using your services. You will lose a small percentage every year not matter what. Market and keep developing new clients.

 

[mikefine]

This stuff happens all the time. I just try to keep the emotion out of it.

I have a client in MD. and we have been doing work for them for about the same amount of time as you describe. (lol We may be talking about the same client.) Every project we do for them they are very pleased. Trailers, and wall graphics, big and small stuff. We provide good pricing, service, etc. They always send me emails saying how good the projects worked out.

Then whenever a new project comes up, it always seems as though I am starting from scratch with everyone else. When I have asked them about it, they said it is nothing personal -- just office politics.

I find this very frustrating, but common in the sign industry. So I feel your pain, but like I said, you can't respond emotionally.

Your situation may have nothing to do with price. I would call the guy up -- owner or person who orders the signs -- and ask how that sign project is going. If he says there is an issue, tell him you'll fix the other shop's error, at a very reasonable cost. If he doesn't share the issue, tell him you noticed there might be one. He might want to consider having it fixed. Remind them you have a 6 year relationship. You may want to say, "Hey, it is water under the bridge at this point, but I am just curious, what made you go with the other vendor?" You might be surprised by the answer.

 

[GypsyGraphics]

don't make it uncomfortable for them to come back and use you.
let them save face... if you say anything at all... tell them your sorry to hear that job didn't go well.

 

[Bobby H]

I would not take any sort of punitive action against the customer (such as raising prices, etc.) unless the customer really did something to deserve it, such as take your surveys, artwork, etc. to a competitor and let them re-purpose that work and undercut your price. Such a thing is a clear violation of copyright law, but that sort of thing happens at least every once in awhile. Not every customer or rival sign company does business in an ethical manner.

Always leave the door open for a former customer to return.

Take any loss of business from a long time customer as a wake up call. What might you have possibly done to lose the customer's business? Take the opportunity to make improvements, particularly in the area of customer service. Price alone does not guarantee sales. Prompt attention and interest to a customer's needs can trump another company's rock bottom price.

 

[royster13]

Sometimes for someone like me it is about being in the right place at the right time rather than you doing anything wrong....I might call on a potential client many times and sometimes that persistence pays off when I take work away from another supplier....

 

[Pat Whatley]

You are in business to make a profit.
No matter how personal it gets. Nothing is personal in business.
No one owes any one anything.
Always raise your prices a few percent every year. Always.
He wants you to do his work.. Take the order, take the check and cash it.
Never get involved with why he picked the "other guy" All to often we do not know the real reason why. And it is irrelevant.
Develop a business model that does not depend on all old customers to keep using your services. You will lose a small percentage every year not matter what. Market and keep developing new clients.

Print this out, tape it to your door and read it everytime you walk in or out of the shop.

 

[iSign]

John, when was the last time you did a 10x18' backlit sign face on panaflex?

How about one half that size?

Any one at all?
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I thought so... perhaps this seemingly minor detail shown through in your conversations with the client and they were nervous about that.

also, when someone says "be wary of third hand information"... and you say :I know the number is right, the third guy SAW the paper" ...

um... that really is you in your avatar huh?

 

[HulkSmash]

Losing bids comes with the job. Loyal or not. If they were more expensive, there must have been something you did that made them try something else. That doesn't mean don't do work for them... at least if you want to grow. That's crazy talk. Don't let that ruin your day, there's plenty of jobs out there to cover for one small lost one..

 

[Rick]

I think it's kinda good when a "loyal" client strays over to the competition.

When (or if) that experiment fails, you are at an advantage to be the go to shop all that much more the next time a job comes up. If it does not fail, you might look at making adjustments in your service.

 

[Dave Drane]

Your customer is only your customer whilst you are working for them. Don't go asking what went wrong and NEVER bag your opposition. If you were supplying quality work and your opposition was giving them garbage they will come back, and don't try sticking it up them. Say nothing and and continue as if nothing was different and they will respect you. You know what rate you need to charge for labor and materials to keep your shop afloat so don't vary on the price.