There are simple ways to ensure profitable business.

 

One way is Leading With Revenue, which I have talked about in my last 2 blogs.

 

From the last blog, we know Leading With Revenue can add Value whether we are dealing with new products and services [inventions] or existing products and services [which aren’t selling as well as we would like]. The key is obtaining Client input… and a revenue-generating purchase by a Client is powerful positive feedback.

 

I promised some Leading With Revenue success stories.

 

Here are a couple of success stories…again, I have altered the details to ensure confidentiality.

 

 

Dave was approached by a large local company to provide consulting services under a short-term project.  Dave was flattered by the acknowledgment of his expertise, confirmed by the attention offered by the large company. However, Dave declined the offer and provided a counter-offer. Dave’s counter-offer consisted of a multi-year contract providing a Value-adding service that included the consulting but also included a clear and expert solution to a major problem well-known to exist at the large local company…at least, well-known to Dave. Dave’s counter-offer contained pricing and other terms that reflected Dave’s senior-level Value. Result – the large company accepted Dave’s counter-offer and both parties enjoyed the Value-exchange that followed.

 

 

Jim and Sarah run a local manufacturing company. One of their larger clients came to them and requested a price discount, to match the competition. Jim and Sarah were somewhat puzzled because the relationship had been strong with the client and Jim and Sarah’s company had a habit of over-delivering with quality. After some discussion, it became clear there was a disconnection between the Value as seen by the client and the Value as seen by Jim and Sarah. To satisfy the client’s price-discount request, Jim and Sarah would lose money. They discussed this with the client. Jim and Sarah confirmed they would not drop their price.

Now, there are two alternative endings to this example…the choice of ending depends on which ‘Jim and Sarah’ we are talking about…both happened:

Ending 1: The client checked with his head office and confirmed to Jim and Sarah that no price discount was required. Since that event, there has been no further discussion of price discounts.

Ending 2: The client took his business to a new supplier. That supplier went bankrupt in 6 months and the client had no choice but to return to Jim and Sarah. The client then accepted the price increase offered by Jim and Sarah. Since that series of events, there has been no further discussion of price discounts.

 

The next blog will be the last in this Leading With Revenue series…