Remember the time you stayed in a luxury hotel?
I do.
I forgot my iPhone charger. Called the receptionist and they provided me with one in 5 minutes. Went over to the tennis court the next day. Tennis balls were ready. Cold drinks and towels served. Went back to my room and found a cake and fruit platter on a plate. They noticed it was my birthday month!
The care was amazing.
I told myself, this is money well spent.
The truth? The cost of all the extras has been baked into the price I paid.
If you despise “scope creep”, it’s your fault…
Most service businesses despise scope creep.
Imagine being a marketing agency servicing a client. After 2 months of working on a project, they hit you with a request.
“Can you help post this on our social media?”
Ooh, scope creep. Most marketing agencies would start to despise the client. “This client sucks! They ask for more than they give! Life is miserable!”
It happens all too often.
Some people will suggest negotiation scripts and billing for the extra work by hours.
I've worked with enough clients to tell you it's always a bad idea to do this. Because how would your client feel? Not great, I suppose.
If you've ever found yourself in a similar situation, here's the real problem.
You didn't charge enough, had no margins to cover and couldn't account for such requests.
We all need to charge more
Startups are taught to be 10X cheaper and faster. And then there are the guys who ship mediocre products, and charge less, hoping to get away with it.
I’ll argue that most businesses do not charge enough.
When you charge more, you’ll be able to:
- Provide a better service
- Build a better product
- Hire better people
- Provide over-the-top support.
- Have bigger margins for error
Macs are undeniably more expensive than most Windows-based computers.
But when you need support, Apple's customer service is one of the best in the world. How are they able to do it?
Because they've baked the cost for providing all that support into their products.
You paid a premium and is treated like a God.
Don't we want to treat our clients well? To overpromise and overdeliver.
Charge more. Your business, people, and clients need it.
Join Daily CMO at Retail Summit Asia
Let’s connect at Retail Summit Asia, happening on 18 September at Sheraton Hotel, Petaling Jaya.
Use promo code CMO to enjoy an additional RM 10 OFF on VIP Access Passes. Learn more about the business summit on Retail Summit Asia's website
