Comments on: How to re-negotiate with your customers — and not lose a single one

By: Mark

Mark — Tue, 05 Jan 2010 23:51:42 +0000

I would much rather work with a company that was honest with me about their situation. Given the choice of paying slightly more, or having my supplier go out of business, or have my supplier unable to perform… I’d much rather have a small increase in charges.

By: Mark Suster

Mark Suster — Mon, 04 Jan 2010 17:47:11 +0000

Obviously I’m in Jeff’s camp on this one. In a booming market I’m a big believer that you honor the contracts you’ve signed — good or bad.

It takes unusual circumstances to have to call customers back with your tail between your legs and renegotiate terms. But when you’re faced with trade-offs including staff cuts or bankruptcy, I think most customers appreciate the candor and openness and if you provide a great product/service I think most people will stick with you. And I’ve been through it so I can say, in my case, it really worked.

By: Jeff

Jeff — Mon, 04 Jan 2010 15:58:17 +0000

I would actually disagree with Rebecca. I would rather do business with a company which calls me up and explains problems, etc. Or at least emails. Instead of announcing price increases or cutting staff without keeping your clients in the loop. I think most people would pay a little more, even if it was cheaper somewhere else, because of the relationship. People like knowing the person behind the company is real and cares. That’s how you reach quality vs. quantity.

By: Rebecca

Rebecca — Mon, 04 Jan 2010 09:23:41 +0000

I am pretty open minded about stuff like this, but I think this rings more true in a buoyant market where you have little competition or where your businesses are entwined so that it would COST your client money and time to change suppliers.

It’s good advice though and they say if you raise prices by 10% and lose 5% of your customers, you still win.