work ethics question

[BigTwinky]

Do not mix business with family. Just because your dad happens to work for the company does not mean that you need to treat them any diffirently than any other company you are trying to keep as a client.

I think you treated them fairly. You quoted them a good market price, so they are happy as they are paying less than anywhere else. And you found your product at a cheaper price, giving you a higher profit margin.

Sounds like a win-win if you ask me.

If you would of dropped his price from $795 to $400, then he would of wondered why the hell there is a sudden drop in price (unless such fluctuations are normal in the industry?) and may start giving you hassles on all your future quotes.

Just my non expert advice

[Hammy]

ok here is my lil story:

i work as a marine electric salesman. i sell electrical to companies involved in shipbuilding and ship repair and some oilfield work. ok long story short. my dad works for this shipyard, starts with a B ends with an ollinger i'm sure some of yall know the name. anyways he is a foreman so he really doesn't buy stuff from me, but his purchasing agent just started giving my company a chance to pick up business and be their supplier. i took over the job of handling their account. the other day the guy calls asking for some circuit breakers, he bought them for $395 each 3 months ago, but now MY cost is $795 each, once again that is my cost, not my sell... so i didn't want to look like a jackass and i quoted him my cost just at a showing of good will. he calls back an hour later and says "ill take 8 of them" so thats a $6,360.00 sale. Buuuuttt i have a super top secret source that offered me these same breakers at $365 each so i bought them from this company and sold them @ $795 to the other company. Therefore i incur a $3440.00 profit.

Ok, let me ask... should i have not jooged him that bad? lol. I mean it is my dad's workplace and he knows my dad also. but at the same time, i feel that its not personal its business and if he woulda called any other distributor he would of probably wound up paying MORE for the item b/c i technically sold them at book cost which nobody will ever sell at b/c they have to make a profit.
any opinions?

i know this was a lil winded but it was on my mind lol.

oh and i also got major kudos from my boss for such a high profit margin

Jeffro-

On the weekends (usually at night), I'm chasing douchebags and finding unregistered sex offenders and dropping them off at jails across California, Nevada, and Idaho.

BUT- during the week I sell software technology to companies that make over $250m in profits each year.

I happen to LOVE these types of questions because they bring out 3 people: salesperson versus an administrator versus a marketing professional.

What do I mean?

A salesperson worries about rapport.
An administrator worries about fact, process, and compliance.
A marketing person cares about 'feelings'.

Back to the question:
If I understand you correctly, your cost is $395, and your price is $795.
You have a secondary supply source that will give you a $30 break on your cost, and you use it sparingly.

So you have some sort of connection to the person you are selling to, and you are wondering what the right thing to would be.

Here is the first thing you need to remember:

People buy from people they like. In the end, no matter how necessary, how limited, or whatnot, people ALWAYS have the decision to simply not buy. So even if you were the last person on earth who could provide this product or service, if they dont like you they wont buy it from you. Period. I have heard this one debated over the years, and I have yet to hear the anything that could change this fact. There are resourceful solutions beyond the obvious that allow people to 'get by'.

So the first thing you should always assume when selling to friends, family, and referrals, is that you have already provided a business value by giving them a certain comfort in satisfaction that you are liked and deserve the business.

Secondly, it is in fact their problem if they would like to take advantage of their friends and take money out of their pocket simply based on a relationship. As a rule, Friends, family and loved ones DO NOT weaken each other. Your success translates into their success if you really have a relationship.

Third, a discount isnt a bad idea, but charity is. Would they sell you their car at cost or below blue book? You bet your ass they would not. This is no different, but because that isn't a relevant example, I would urge you not to use this one.

Fourth, just because it is friend and family doesnt mean you wont have to sell. You are in fact going to have to use an aspect of your salesmanship you dont use very often in business, but use in real life unconsciously. You're going to have to remind them in your own way that you are there for them, that if they need to return anything it will be easier, and etc. You're also going to have oversell the upsell. Reminding them that you have other things they will need, and that you will always give them your best price. You are family, you are obligated to be truthful and it is an absolute guarantee- can they depend on that from others?

Last- Profit.

Profit is profit, and that is none of anyone's business. Do I go behind the counter at your business and ask to see all your books, validate your leasing costs, operations cost, and etc. before determining that your price is fair? Profit is such an ambiguous number. It is a gross value that often is not accurate in value- transportation costs, cost of doing business, etc- sometimes that profit is actually far less than the $3k you quoted here, and it is a necessary sustenance in order for you to be there for your customer tomorrow.

Extra Credit- People like buying from successful businesses and successful people. If anyone ever complains, you should tell them that you are successful only because you are busy and in demand. The numbers are of no consequence if you are not needed. If you feel people need a discount, give it to them, but do not tell them what the value is- tell them it is there and you need them to trust you on that. 9 of 10 times they do.

[Jeffro]

very well put hammy

[Cain]

Vito, i need some CRACK, really, really bad... I'll do anything... Can you help me?? .. please ???

[Jeffro]

lmao