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We can get in all kinds of trouble talking about politics with customers during this presidential election year. We can also get into all kinds of trouble when we talk with our customers about their relative value to us.

Letting a customer know what their relative worth is to our company, and us, is not a good move.

Scenario 1, Question from one of our small to medium customers: “Gee Scott, are we your biggest, or one of your biggest, customers?” If we tell them they are one of our most valued customers (in order to make them feel more important) we have just given away all kinds of future negotiating power. If we are truthful and tell them that they are mid-pack (or lower) then they could be offended. Remember that many, if not most, of our customers think they are near the top of our customer hill.

The best way to handle this scenario is to answer with something like, “My business is split up by product, industry and geography. For the products you buy in your industry and in this part of my territory you are very important to my company and to me.” There are a million variations on this kind of answer.

Scenario 2, Same question from one of your biggest and most strategic accounts: “Gee Scott, are we your biggest, or one of your biggest, customers?” What we want to do here is to let them know they are very important to us without letting them think we are overly dependent on them, which robs us of negotiating power.

Remember, we are always in a state of negotiation with customers. An answer that could work in this situation might sound something like, “My company and I have a policy that all customers are very important; I hope you know that our unique partnership definitely makes you one of our most important customers.”

It’s surprising, but most of our customers don’t really know where they fit regarding their size and importance to us. Never bring this issue up on your own because it’s almost always a losing proposition for us. If you have a customer who asks this question, be sure to make the customer feel important without showing too many of your cards.

© 2008 Scott R. Sheaffer

Tags: customers, negotiation

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