Dave, do you have a few minutes to spare? I need to run some things by you because I’ll bet you have had to deal with this issue. Of course I did, you would too, because we have all dealt with this crap and so too have our local wholesalers. I have this customer we recently worked for who is griping about what we charged her for a new circulator. She found one online for less money. Oh boy, have I ever! The first rule is do not, under any circumstances, cop an attitude and be confrontational! Listen you dumb a*& is no way to start a productive conversation, even if your inside voice is telling her off! Try to establish empathy. I like to use “Yes, prices are outrageous – have you been to the grocery store recently?” You know she was as we almost all have been and, my God, have you seen the price for eggs?!? She’s already looking for a fight, so try not to fall into that trap.

Hopefully, this is a well-established customer. If so, you can speak to how difficult times are for everyone and the numerous challenges small businesses face just keeping their doors open. Of course an online purveyor has a pricing advantage because, and most folks inherently understand this, they have little to no overhead, often don’t ever touch the products by simply relaying through the manufacturer (sometimes it’s even your wholesaler’s parent company), which then ships the product to your doorstep. They don’t need liability, workman’s comp, vehicle, fire, theft, health insurance, or a host of other insurances. Vehicle wear and tear, tools to purchase, continuing education and maintenance costs. Solicit feedback as you work through the list, and I recommend you have one to follow when fielding these types of complaints.

Leverage your personal and outstanding customer service. Who you gonna call when the widget breaks down? Ghostbusters? The online retailer (hah!)? Will they be interested, much less able, in diagnosing the problem, much less know which widget is the absolute best, most efficient, product for your specific application? Of course not, and that’s where your service holds the greatest value. There are tons of circulators available in a wide array of models, but I have the knowledge and expertise to know which one was best suited to replace that old inefficient tank that’s been draining your wallet.

Remind her you are the one who is available 24/7/365. The one who responded to her no heat, no hot water, clogged sewer, leaking water heater, gas leak, no AC , within minutes of her emergency call (cry for help). Will the big box retailer or online purveyor provide that level of service? In one case, I was able to remind my customer about the horror-show they went through from a botched kitchen remodel they paid a huge sum to the big box store and how difficult it was for them to even get a response from that so-called customer service department. Thus endeth that price complaint!

Seriously, I do respond when there is ANY issue with our work – immediately, we do not run away leaving our customers to hold the bag. Our reputation was “they’re expensive, but always stand behind their work” and I’ll take that every day of the week and twice on Sundays. Straight to the bank! That’s far better than “they’re cheap, but God help you if anything goes wrong, because you’ll play heck getting them to return to correct any defects in workmanship or products”.

If you don’t currently offer subscription or loyalty programs, start planning on doing so ASAP. If you do, and that includes any type of discounts, and the caller is not a member, then by all means sell them a membership at a discounted initial offer. Give your customers a reason for being loyal. Our grocery store gives discounts on gas based upon purchase points. We often get to fill our vehicle tank for less than $1.00 a gallon! Think we’re gonna jump ship to purchase eggs for 20-cents less at a competing grocery store?

She’s still not convinced? You can certainly explain that the big box retailer sells what appears to be the same identical widget, but it is not and is built using cheaper less robust components. Or, the product was sold to the retailer with no warranty from the manufacturer, which can account for on third, or more, of the widget’s cost. You, on the other hand, provide both a labor and material warranty for products you sell and install.

Another tactic I have found to be surprisingly reasonable is to simply ask what you need to do to make them a satisfied customer? More often than not, they are taken aback by that question and become quite reasonable. Where I thought they would demand the moon on a silver platter, they wanted a sympathetic ear or minor adjustment to the bill. If they have been a good customer, a discount is easy to swallow. If, on the other hand, they have a long history of being a chronic complainer who almost always demands an unreasonable concession, maybe now is the time to say “yes, I will agree to that, but please do not call us for anything again”. Although extremely rare, I did fire customers once they truly deserved to be shown the door, and, yes, it felt damn good.

There are tons of circulators available in a wide array of models, but I have the knowledge and expertise to know which one was best suited to replace that old inefficient tank that’s been draining your wallet.

You think you have it bad? A good friend is a salesman with a local wholesaler and he related the following: David, you can’t believe the crap we put up with from contractors. They use our showroom, consume large chunks of my time for quoting jobs, only to have them turn around and purchase the goods from online “wholesalers” who will sell products, often somewhat below our pricing, to not just our customers, but the general public! Just last week, I had a mechanical contractor purchase inferior model tankless water heaters that required special venting; we do not stock the venting product, and then installed improper vent materials. When I pointed out that the venting materials used voided the manufacturer’s warranty, they said they didn’t care because the customer will never know and they had to keep the price low. We talked for more than an hour in the grocery store catching up and lamenting the state of all things customer related!

Last but not least, I have asked the “customer” if they want to ensure we’ll be there at some point in the future to answer their call. I was never shy about stating we had to be profitable or the next time, our phones might well be disconnected and our business closed. When I first struck off on my own in 1979, I almost felt guilty when confronted about what I charged. As the years/decades flew by, I absolutely felt zero remorse or regrets regarding what we charged. While the Internet, and access to predatory pricing by those who would compete for our customers’ dollars increased, I became a bit more creative about retaining the sales. For example: you want to purchase and provide the widget(s)? Fine, but you will have no warranty on our labor or the widget(s). If anything does go wrong, barring defective workmanship, you will be charged for 100% of our time dealing with the issue and the repurchase of said widget(s). Many times, that ensured we sold the products – including our standard markup. Profit is not a dirty word!