I admire dynamic manufacturers that have taken steps to position their companies as more than product-sellers. No one wants to fight "commodity wars," and smart companies listen to what customers need in terms of valuable services--warehousing, fulfillment, document design and composition, workflow re-engineering, internet consultation and more. The key word here--one that brings up an interesting question--is valuable.The adage "nothing is free" is right on the money. (Forgive me for the pun.) More specifically, nothing of value is really free. So the important question is this: Should you unbundle your important service offerings in menu-like fashion and charge individually for them, or should you offer one price and spread incurred costs elsewhere? If you choose the former, some customers will ask, "Why are you charging for stuff other companies give me for free?" If you choose the latter, you can use the effective marketing move of touting "free, value-added services," but customers could perceive your company as shrewd instead of service-oriented.
For me, it's a question without a clear-cut answer because I see merits on both sides of the coin. I understand the effectiveness of giving customers the impression that they're getting something for nothing. Many consumers get caught in the retail mentality of wanting to come out ahead, to get a better deal than the guy down the block. (Chances are, we've all been there.)
But I feel strongly that if customers truly are using your company because of its valuable offerings, they won't mind paying fairly for them. In years past, end users didn't expect distributorships that designed their forms to also handle their mailings or provide support for their computer systems. Today, more customers do expect these services--and pay for them. How can our customers be expected to recognize the value we provide if we're not treating our services as important? What type of message are you sending by "giving away" anything? The approach can lead to a perceived devaluation of your business.
While I'm in the "gray area" between appealing to customers' emotions and appealing to their pragmatism, one thing is clear to me: Buyers tend to embody the same characteristics as their vendors. In other words, if your company is a penny-pinching firm concerned deeply about price, you're apt to attract clients that are penny-pinching, too. If you hold customer service and value-added offerings in high regard, you're apt to attract clients that feel the same.
Offering services, especially ones highly customized to meet needs of your best clients, can help your
company grow. However you structure your pricing, promote your services for what they are--helpful and
valuable.
J. Buster Weinzierl, CDC, is president of Belknap Business Forms Inc., Mayville, N.Y., and vice president of DMIA.
