Can't Versus Won't

There are often times in both business and interpersonal interactions where someone makes a request of you. A customer asking for a refund or a discount are two examples. When these requests are made, we often respond with something like, “sorry, no, I can’t.” However, in most of those situations, we are not being truthful.

How are we not being truthful? Well, it’s because we say “I can’t” when we actually mean “I won’t.” We all do it from time to time. Why do we do it? Because it’s the easy way out. “I can’t” implies that there is some barrier in the way, thus making the request impossible. We use it in the hopes that it will shut down the requester. However, in how many instances is there actually a barrier preventing the honoring of the request? I would argue not many at all.

So, in these situations, consider using “I won’t.” It’s more truthful and less dismissive. Customers won’t necessarily be happy, but they’ll know you have standards. And that is not a bad thing.

Pricing Products

Pricing is a big deal. It’s not just a simple markup situation, though that is a very common practice. When setting prices for your products, be they good or services, there are a few things to consider.

First of all, do not worry if you are not the lowest price option in the market. Many companies fret over not being the price leader. However, not being the lowest price has significant advantages. Higher prices signify higher perceived quality in consumers’ minds. Think about the outdoor apparel/gear company Patagonia. If you’ve ever priced their items, you know that their prices are sky high. However, this strategy works well for them. It is a signal to the market that they have good quality products. And you won’t find low quality products priced high because they will be “outed” by the market very quickly.

Secondly, and clearly related to the first point, consumers don’t necessarily shop around for the lowest price option. Some do, yes, but many do not. Provide a good product with good value, and you will do fine. Going after that lowest price may lead you to “leave money on the table” with customers. In other words, they might be willing to pay more than what you charge.

Third, higher prices, when coupled with higher unit margins, will allow you to better support your products through better service. This may be crucial to making a sale. Low priced companies tend to have minimal service, if any at all. So being able to provide some service support will work wonders in attracting and keeping business.

There are many other issues to be concerned about when it comes to pricing, including your competitors. Don’t take the practice for granted….it requires more thought that you might think.

Social Recommendations

How good is your social media presence? And what are your goals for social media? An obvious goal is to increase business. Duh. However, you should have a number of “upstream” goals that, over time, should lead to increased business. One such goal should be to increase social recommendations. According to Nielsen’s Global Trust in Advertising Report, consumers trust the recommendations of others compared to communications that come straight from the company itself. This doesn’t mean promoting your business online isn’t important….it is. But it should only be one part of what you do in this domain.

We get bombarded by all kinds of messages requesting us to “like” a company on Facebook, follow them on Twitter, review them on Yelp, etc. Though it may seem on its face a little silly, it is actually very valuable to build this base. Other consumers see this attention as a positive and it improves their perceptions of the company.

So, if you are not encouraging your customers and potential customers to do or say something positive for you, you are behind the curve. But all is not lost…it’s not too late to initiate a program to do just that.

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Maranello Consulting is a marketing consulting operation based in Dallas, TX. We have experience in many areas of marketing, including strategy, planning, social media, customer service, data analysis, market research, and marketing troubleshooting. Maranello can also develop and deliver custom corporate training workshops on all things marketing. If you have questions, please do not hesitate to contact us at maranelloconsulting@gmail.com.