Many may not feel that this is an ethical question or one of integrity, but I absolutely do.
Let me set the stage...You recently raised the prices for a program/service/whatever and sent out several notices that you were going to do so.
The question...
"What would you do if a former client, someone you consider a friend, asked you to honor the old pricing structure?"
Option 1: Would you give them the old pricing?
Option 2: Would you decline and them the new pricing?
Option 3: Other...
I know what I did when in the situation and am curious about what you think -- please leave a comment below and let me know your thoughts, okay?
I would honor the old pricing if;
1. the relationship would benefit
2. the old pricing would not compromise a fair profit
3. if the good will would be reciprocated.
Its not always about the money
Posted by: JoAnne Funch | April 06, 2009 at 12:53 PM
This has happened to us in the past, and we usually do try to honor our previous price quote(s) for our custom crystal apparel (although Swarovski crystal has a annual price increase).
We feel that this strengthens our relationships with our customers - win/wins are great for all involved!
Best,
~ Lee
Sparkle Plenty Designs
www.Sparkle-Plenty.com
Posted by: Lee Romano Sequeira | April 06, 2009 at 01:17 PM
Great question, Sandy!
This may sound pretty black & white but I believe when I've given plenty of notice (which I know you do) then it is important to uphold my boundaries for 2 important reasons:
1. Not doing so diminishes the credibility of my word - which may then create an integrity issue about doing what I say I'll do (internally at least, if not also externally)
2. Not doing so is likely to breed resentment for agreeing to something I felt compelled to agree to because of the issue of friendship - potentially damaging the friendship.
Which brings up the question of why a "friend," who is also a business owner, would ask for such a concession to begin with?
I know my approach runs the risk of losing the friend and her business but I think the long range risks of not enforcing my own limits are far greater.
Posted by: Lisa A | April 06, 2009 at 01:37 PM
What a great question!
Something similar happened to me recently, except I wasn't asked to honor my old price. This is a client that had not worked with me for the last 3 months or so. I still hesitated to charge my new price but I did anyway. I was delighted that she didn't question at all. She obviously understands my value.
Posted by: Andrea Ramirez | April 06, 2009 at 03:26 PM
That does not have to be an either/or question. You could ask them to make up the difference with barter, or to give you a solid reference, any number of alternatives. Similar questions arise for speakers when meeting planners, including bureaus, ask speaker to work with budget of the client.
Posted by: Joe Tye | April 06, 2009 at 03:31 PM
If someone is a former client (not a current one), I would ask them to honor my new price. (I give current/ongoing clients a little time to move up to new prices.)
It's how I show a commitment to myself that I am worth the new price.
Posted by: Isabel Parlett | April 06, 2009 at 03:53 PM