Over OnStartups there’s an interesting post about whether or not cheapskates make for good customers.
I remember one cheapskate who came into my store. He drove from San Francisco to “save” five dollars. I still remember that I thought he was the biggest idiot I’d ever met. Why? It takes an hour to drive from SF to SJ and the average car costs something like $.32 a mile to operate. So, he wasted money, even if his time isn’t worth anything. I knew he would never become a loyal customer cause I knew he’d go to any distance to find a cheaper price.
Good discussion, though, on what makes for a good customer.
Me? A customer who gets involved. Who tells other people about you. Who gives you ideas on how to improve (thanks to those who have emailed me, or gone to my wiki and left me suggestions or tips or interview ideas).
I remember one customer in the camera store I used to work at (who eventually became my favorite — and was extremely loyal). While I was writing up his multi-thousand dollar order he went and bought both of us lunch.
Did I remember that the next time he came in? Certainly did.
I’m a cheapskate until I find a store I really like for that category of product, and then I become a repeat customer. Thus, as I get older, I become a cheapskate in fewer and fewer product categories.
I’m a cheapskate until I find a store I really like for that category of product, and then I become a repeat customer. Thus, as I get older, I become a cheapskate in fewer and fewer product categories.
Robert: Thanks for the link to my article at OnStartups.com.
By way of clarification, the original article was focused on early-stage software startups. What makes for a great customer at that stage (and that industry) doesn’t work everywhere.
Also, there is nothing wrong with having a software company focused on providing a product differentiated on price, but most software startups are usually focusing on product innovation.
Robert: Thanks for the link to my article at OnStartups.com.
By way of clarification, the original article was focused on early-stage software startups. What makes for a great customer at that stage (and that industry) doesn’t work everywhere.
Also, there is nothing wrong with having a software company focused on providing a product differentiated on price, but most software startups are usually focusing on product innovation.
No Doubt. Best customers are those that pull in other people. If you are a store employee you can easily notice. The same guy will come to the store half a dozen times with different people just for the experince.( I do that
. The best that can happen on those visits is when the store guys recall your name and address you)
sometimes cheapstakes do it so that they feel good about the ‘best deal’ they got for the item. It may not be for the cost they save. It feeds their ego i guess.
No Doubt. Best customers are those that pull in other people. If you are a store employee you can easily notice. The same guy will come to the store half a dozen times with different people just for the experince.( I do that
. The best that can happen on those visits is when the store guys recall your name and address you)
sometimes cheapstakes do it so that they feel good about the ‘best deal’ they got for the item. It may not be for the cost they save. It feeds their ego i guess.
Gary: good point. I turned most of those into customers. We also had the first lowest price guarantee in Silicon Valley that I can remember.
Phil: absolutely, but who pulled me into a Walmart first? An evangelistic customer.
Gary: good point. I turned most of those into customers. We also had the first lowest price guarantee in Silicon Valley that I can remember.
Phil: absolutely, but who pulled me into a Walmart first? An evangelistic customer.
I think Wal-Mart would be glad to show you how cost conscious customers can lead to great profitability.
I think Wal-Mart would be glad to show you how cost conscious customers can lead to great profitability.
The question is whether or not you have the ability to turn price shoppers into repeat customers. I work in the retail motorcycle industry with a company that does training for dealship employees. The price difference between some stores there may be thousands of dollars 20 miles apart. The difference is service, support and people. We teach all of our sales trainees on how to effectively deal with a price shopper to turn them into a customer and the dealership owners on how to make their store a place that customers want to come back to.
The question is whether or not you have the ability to turn price shoppers into repeat customers. I work in the retail motorcycle industry with a company that does training for dealship employees. The price difference between some stores there may be thousands of dollars 20 miles apart. The difference is service, support and people. We teach all of our sales trainees on how to effectively deal with a price shopper to turn them into a customer and the dealership owners on how to make their store a place that customers want to come back to.