Situation:

You sell various chemical components used in the production of PVC pipe. The buyer for one of your oldest customers, with whom you've had an excellent relationship for several years tells you that he has been approached by one of your competitors who is offering better pricing on a few of the products you supply to them. Its not much of a price difference but he wants to know if you'd match the price.

Your company has done, and continues to do a lot for this customer to maintain the relationship and help the customer build their business. Some of the things your company does include: routinely bailing the customer out with "rush" shipments without assessing a "rush" charge; extend quantity pricing on orders that don't meet quantity discount requirements; and participate in monthly Quality Assurance Reviews with the customer to help identify ways to improve quality and reduce costs. None of your competitors extend the level of service and participation your company provides.

What should you do?

• Give in and match the prices. After all, you don't want to take the chance of losing a good customer.
• Stand your ground. If you give in on one or two items you'll only be opening the door to negotiate lower prices on all the items you sell to the customer.
• Remind the buyer about all you do for his company and ask him to reconsider his request.

Answer this week.

Copyright 2006 Sandler Sales Inc.

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