Tuesday, January 17, 2012

If the Pope complained about my prices, I would tell him to go to Hell.


When I used to be practically a partner in a irrigation business, I had received the greatest gift. I got to experience different people from all walks of life personally in a business setting. It is amazing how business transforms someone, including customers. Business brings out character in people. When a consumer is faced with a choice, you get to witness who they are first hand. It took me 9 years to realize one more important fact about people and business, the amount of money one has should never define the value of them as a customer.

I wouldn't have admitted it up front, but I realized that I tended to act with an air of excessive respect to customers who were famous or were known around town to be well-off. I would pull up to mansions around the island and practically bow to those who answered the door, regardless if they were maids or the owners, just because these people were either TV stars, related to them, or politicians. I would like to think most of us who were 'green' in running a business (especially a service business) had the feeling like we owed these people something just because they are rich and famous and they chose us and our business instead of our competitors. Don't get me wrong, to a large degree, we do owe these people something. They chose us, but have you picked up on the flaw? I am referring to the 'rich and famous' as 'they', as if they are degrees above us. I am referring to 'us' as if 'we' are any different from 'them'. There is no distinction. Money and power should have nothing to do with how much more respect and value one receives when it comes to doing business. Everyone should start with the same amount of respect and be considered of great value, regardless.

This post is not about being equal though. This post is about giving respect to those who do not deserve it, regardless of the amount of wealth or power or fame. A rich and famous person who does not want to pay you for the services you render at the same rate everyone else pays you is worth none of your time.

I would get into these situations a lot. There were many people in this county who would call me up for my irrigation services who more more than well-off and well-known. I would feel the urge to grant requests of deep discounted prices to the rich and famous simply because they were rich and famous. Kind of ironic right? The ones who could pay for it ten times over would be the ones receiving the largest breaks. I resisted the urge though. My father would constantly tell me, "Everyone pays the same. They pay what you tell them to pay, and you give them an invoice with the rate you are worth". Fair enough. This is how business should be conducted. But would you know it, I would get more requests for discounts from the well-off rather than the average customer. The fact that they asked for a discount does show the signs of a go-getter, because that's what go-getters do. That is how you get ahead of the game. Get more value for less money. It is in all of our genes. It's how you should live your life.

Where the Buck Stops

It stops with the people who refuse to pay you for what you are worth. What do you do now? Does losing money and wasting time on a customer who is wealthy and well-known sound justifiable when it comes to defending them as a customer?

"Hey guess what? I just got off the phone with Tom Hanks about putting in an irrigation system!"

"Oh man that's awesome!"

"Yea, and he doesn't want me to do it unless I charge him the wholesale prices I get my materials for and I do it for half the labor rate I normally charge."

NOTE: I have never actually talked to Tom Hanks or anyone that has to do with his estate about doing any business. In fact, Tom Hanks is my favorite actor. But what do you do in this situation?

"Well shit, its Tom Hanks! I have to do it because if I don't, I am going to be despised by Tome Hanks and I will be missing out on the business opportunities and connections he would totally get me!"

There is a good chance he would get you connections, but guess what? These connections will be at your door because they know you will work for practically nothing and you will be paying for their materials with your time you aren't getting paid for, just like the first job you did thinking the connections were going to get you a lot of business. You get a lot of business, but nothing profitable. You get a hell of a lot of headaches too. You may get one or two who will pay what you are worth, but don't risk your time giving and giving. No one will pay you back the effort and worth you gave away. Establish values and hold yourself to a high degree. Know what you are worth, and invoice accordingly.

If not the rich and famous, then who will I put on a pedestal?

I am no longer in the irrigation business. My father sold the business (it was his to begin with) 6 years ago. He sold the customers and most tools. Two years after he sold it, he began getting phone calls from customers whom we got to know well through doing business (since we acquired them after we bought the business from a family friend).

"Charlie, do you still do a little irrigation? I really don't like the guy who runs the business. You were really good to me."

This came from two customers in particular. One was a gentleman who lives roughly 3 miles from my house. Another is from an elderly lady who had practically outlived her entire family, and survived her daughter who succumbed to cancer two years ago. By the way these customers lived, they seemed to just make enough to pay the bills. Whether that was the case or not, I can't tell. What I do know is that they paid me what I invoiced them. They paid on time, and I even received tips for doing the work I was billing them for. I billed them for what I was worth. I billed them the same amount I had invoiced those who were seemingly "well-off" and who denied my business because it was too much. To this day, even though I borrow a machine to winterize there system, even though I am no longer in the irrigation business and it is a big shift from what I am doing now, I value what these customers bring to the table. They loved my business, my service, and had no qualms about paying what I thought I was worth. These are the people I should have felt the urge to bow down to at the door. These people were worth my time.

What I Want Driven Home

I don't care if it is the Pope, the President, or a pauper. If someone wants your service, you tell them what you are worth. Don't give them a lower number because they asked for a discount. That shows you do not value your business. That shows your talent isn't worth what you were asking. That uncovers a lack of confidence in your ability to provide excellent service. If the Pope said he wouldn't do business with me because he believes I am not worth as much as I had stated I was and I know for a fact I offered a low price to begin with, you better believe I would invite him to call when he is ready to receive top-notch work. Until then, I am off to do excellent work for those who will pay for excellent work. I charge the same rate, no matter what discounts I receive at the store. I will continue to work with those who value my work, who pay on time, and who enjoy my work as much as I do. I'll tell those who are discount shopping to go hire a business out of the Pennysaver. I do excellent work.