Some Customers...!!...

[Liesl Dexheimer]

I guess I just need to vent....

I have this potential customer (customer is head of a church) who contacted me last year wanting to see a catalog of perpetual plaque options. He borrowed it for a few weeks and then returned it. I quoted a price & he said he would have to run it by some people & he would get back to us. Well, it's December (a year later) he contacted us, wanting to meet & discuss options further. No problem. He brought in someone else though, which created a problem b/c the 2 of them were having trouble coming to an agreement about what they wanted. 25 min later they decided, I told them I would send them an invoice & they would have to send a check before we went ahead with the order (it was a $400 order). I emailed them a bill Dec 7th, they told me they would send a check within a week. Week later, no check (thank god I didn't order the stock). 2 more weeks pass, still no check. Finally, last week I emailed & asked if they were still interested, received a response saying yes they were still interested. So yesterday I sent them a revised invoice telling them the price had increased $45.00 total for the 2 perp plaques (vendor has gone up since we are in a new year). I received a response this morning saying that he would like to talk to us by phone tomorrow. Now either he is upset about the increase or he just wants to talk details about how to place the order or he's changed his mind entirely..not sure which.

Am I right to increase the price? I would like to think so, if the vendor has gone up I can't absorb that price. They had 3 weeks to send me a check before we entered the new year. I would like to think that was enough time for them to find the funds...

I don't get it, they were really happy when I told them that engraving was included in the price, everything seemed on the up and up. I honestly feel like telling them not to come back until they are really serious (like having a check in hand).

[Rodne Gold]

I think you should go no further until some deposit to show good faith is put up , I think you are being dickered around with. I would be highly dubious of this type deal and the timelines in my business. I would be considering "Firing" this customer myself.

[Robert McGowen]

I always include something on any quote to the effect that "price is valid until such and such date." I don't see how a customer is supposed to know your business and when costs are increasing, etc., and it does not look like you gave them any specific response time. As it appears to be an on-going negotiation, I personally would not change the price. YMMV

[Derek Gilmer]

A 10% / $45 jump in a little over a month seems pretty steep to me. If I was the customer I'd want to see proof of why it went up (ie vendor prices for material) instead of just assuming you weren't raising the price. The main problem I can see is if another shop had stock on hand and didn't need to raise the price to get the business. But if everyone is having to bump prices they don't have much choice.

[Mike Null]

While I think Robert's suggestion has merit you had a contract for immediate sale. You are within your rights to raise the price.

[Ross Moshinsky]

Why react before you talk to the person?

I also think you need to grow thicker skin if you want to be in retail. We've had customers run us around the store for a $15 trophy. It's just the way it goes sometimes.

Lastly, any time you're producing a quoted price it should have a time period it is good for. If the person takes exception to the price increase, you can either stick to your guns or simply take the job and make a little less money. All depends on how you feel.

A 10% / $45 jump in a little over a month seems pretty steep to me. If I was the customer I'd want to see proof of why it went up (ie vendor prices for material) instead of just assuming you weren't raising the price. The main problem I can see is if another shop had stock on hand and didn't need to raise the price to get the business. But if everyone is having to bump prices they don't have much choice.

That's actually not the case. It costs money to warehouse goods. It's completely up to the retailer to decide whether or not to pass on any savings.

[David Fairfield]

When doing business with clergy, expect difficulty. I think others have mentioned this trend.

Dave

[Derek Gilmer]

That's actually not the case. It costs money to warehouse goods. It's completely up to the retailer to decide whether or not to pass on any savings.

That is why I said if they didn't need to increase the price to get the business. Might be worth it to them to eat a little of the cost to get what might be a long term customer.

[Dan Hintz]

Religious organizations (of any kind) have never worked out well for me when it comes to profit versus time spent handling the project. All quotes I send out carry a standard set of terms, one of which is all quotes are good for 30 days from date of quote (or maybe it's less, I can't remember). Material prices go up, and therefore my price goes up to match... I'll eat it within 30 days, but if I know an increase is coming along within that time frame, I'll either change the terms for that one contract to a shorter time (and let them know why it's in their best interest) or bump up my asking price (if I feel they're going to drag their feet).

[Scott Challoner]

When doing business with clergy, expect difficulty. I think others have mentioned this trend.

Dave

Amen. Many people at non-profits treat the phrase "We're a non-profit organization" like it's a Jedi mind trick and you're supposed to respond with, "Oh. OK. Then I'll do your job for no profit."

[Ron Chapellaz]

Here's my 2 cents... Sometimes, that's just part of the business, and you have to take it in stride. I've had dealings with customers that have taken over a year to complete. Some customers that I deal with are volunteers who are a part of a committee. Some projects go on hold because the person looking after the project didn't follow it through. A year later, it is picked up again and I have to start the whole process over. I currently have 3 orders that have been ongoing for almost a year. Two of these orders involve grant money, and there are hoops that they have to jump through before finally placing the order. Some of these orders may seem simple to us, but may require a lot of paper work from the other side that we are unaware of.
Price increases are a fact of business, but you may loose a customer if you can't properly justify the increase. Make sure you explain to them why the price has gone up. You should always make sure you have your customers best interest at hand. Think about what it would feel like if you were that customer being told of a $45.00 increase...

You have spent time building a relationship with this customer, and it would be to your advantage to stick it through...Remember keeping a customer is easier than getting new ones!

[Neil Pabia]

A 10% / $45 jump in a little over a month seems pretty steep to me. If I was the customer I'd want to see proof of why it went up (ie vendor prices for material) instead of just assuming you weren't raising the price. The main problem I can see is if another shop had stock on hand and didn't need to raise the price to get the business. But if everyone is having to bump prices they don't have much choice.

I don't see it the same way you do. I look at it more as what it is going to cost me to replace the stock that I already have. The price increase seems comepletely justified as the supply price has risen. This is just my opinion and may mean nothing.

[Derek Gilmer]

I don't see it the same way you do. I look at it more as what it is going to cost me to replace the stock that I already have. The price increase seems comepletely justified as the supply price has risen. This is just my opinion and may mean nothing.

All perspective I guess. To me that is blatant mark up because you can.

[Dan Hintz]

All perspective I guess. To me that is blatant mark up because you can.

Extend the length of time to a year. An order is discussed in January, but it isn't truly placed until December... in the meantime the cost of materials has risen 10%. Would you fault the manufacturer for passing that cost onto you?

If not, then I'm going to discuss an order right now and get a quote, but I'll wait about 10 years before placing it... I should still get it at the originally discussed price, right?

[Derek Gilmer]

Extend the length of time to a year. An order is discussed in January, but it isn't truly placed until December... in the meantime the cost of materials has risen 10%. Would you fault the manufacturer for passing that cost onto you?

If not, then I'm going to discuss an order right now and get a quote, but I'll wait about 10 years before placing it... I should still get it at the originally discussed price, right?

If a manufacturer goes more than 1 year with out turning over inventory something is seriously wrong.

In your example if you make a contract to buy the goods from the company for a price and they don't put a time limit why wouldn't you get it for that price? That is no different than say Grizzly ordering 10000 table saws from Taiwan. They sit in a shipping port for 2 months (not impossible to have happen) during which cast iron goes up 10%. I doubt Grizzly or consumers are going to be happy to pay 10% more for an already made product because the next round of products will cost more.

That said, the free market is the free market. If you can charge someone 100% more because you are in the mood to that is your right. I'm saying as a customer I'd not have warm and fuzzies over it.