In an earlier blog, we explored how sometimes saving a few pennies is not worth the effort (or time) that it takes to save those same pennies. In this blog, I want to explore why else it may not be worth saving a few dollars, when it comes to your referral relationship.
When it comes to networking, the money you spend can be one of the highest motivators. So when you are making a purchasing decision, you have to ask yourself, what will be the most important factor in making your decision?
Often times, as entrepreneurs and business owners, we are not the least expensive option. AND we feel that we deserve to be paid for what we do.
Sometimes when we shop, we used price as the only qualifier… We have explored this side of the conversation in my blog about toilet paper, today I want to explore this and how it affects your network.
As an example several years ago, I needed a new air conditioning unit. We got three quotes for a new air conditioning unit. There was about $1500 difference between the least expensive and the most expensive, close enough in pricing that they all seemed reasonable.
Which quote did I pick?
I ended up going with the most expensive option.
Why? Not because it was a better system or more was included – I believe they were probably comparable systems.
I chose the option I did because of the relationship that I had with the provider. They are a great client and pass referrals to us, as well as supporting charities that I am also involved with.
For me, paying a little bit more was WELL WORTH it to me to strengthen the relationship.
I was recently sharing the story with a group of Certified Networkers and one of them asked if I had gone back to the provider and asked for lower price or inquired why it was more expensive.
My response was NO. I respected their pricing.
Now, had I chosen one of the other options, and the company found out about it, it could have damaged my referral relationship with the company.
My husband Rob shared that a couple months ago he was working on pricing for promotional products for a referral partner. We have passed referrals to them in the past, and were a client.
A couple days later we learned the company ordered the items online.
Why – so they could save five cents per item.
Multiply the $.05 by the 100 items they got and they saved five dollars.
And now Rob is asking, do I really want to pass them more referrals? Do I want to still be their client?
The moral of the story: Price may not be the most important factor when purchasing; make your decisions accordingly.
In an upcoming blog, we are going to take a look at how much is too much more to pay… another side of this conversation.