By J. Samuel Kellogg
While a number of economists may be seeing some cracks of sunlight in the dark cloud of the U.S. economy, it's still looking pretty gloomy from my vantage point here in Chicago.
The belt tightening hasn't really stopped in the nation's mid-section, and that means our customers, even ones still flush with funds, are wary of spending too much money in case the economy tanks again.
Most of my interior design clients are searching for bargains and not wanting to spend exorbitant sums on luxury items or even to complete projects that they deemed necessary a few short months ago.
As business owners, I think it's important that we adjust our expectations of our customers and clients at a time like this, recognizing that what they want to do and what they're able to afford may not match up.
If they're in a position where they don't have the money to fully fund a project, whether its services or products, it's up to us to make sure they don't feel the constraints of their finances. A customer feeling shame about a lack of funds to start or complete a project is a customer who won't be coming back to seek your help again. Embarrassment only prompts greater distance between clients and business owner in my line of work, and I recommend keeping it to a minimum when dealing directly with clients.
And even if you're feeling their pain because your own business may be unstable due to the economy, it's not something I recommend sharing. While my clients are good people, and many of them are my friends, I think it behooves us as business owners to not appear too desperate for the sale. By keeping your own expectations and needs in check, and not letting the customer know your plight, you are in a better position to negotiate for what you do require to complete a project rather than face questions about business choices from customers.
While you're moderating your own expectations, you will likely have to restrain your customers' as well. After a long history of working together, they may come to your store or office expecting the same high level of personal service and superior materials that you've always delivered in the past. But this time, they'll be looking for it at a third of the cost.
Here's where the veteran business owner really needs to put his or her skills to work to acknowledge the importance of quality work and then to outline how budget constraints will likely result in a different final outcome. A hard and honest conversation managing expectations is vital to the success of your business.
That's not to say you don't do your best on a project or provide the highest quality service you can. It means you'll need to be more creative. It's very easy to be creative when you have a seemingly limitless supply of money behind you, but finding innovative solutions when there are limits demands you tap into your inventive nature.
Part of the creativity will come in not only finding new, less expensive ways to approach a project but also in crafting solutions that take a new tack or change the way you bill clients for projects. Or you could eliminate additional fees you might have charged in the past.
Ultimately, you need to be willing to make less on a project today to guarantee that your customer will be there tomorrow and into the future. With everyone's expectations in check, a good customer will reward you for your loyalty with a lifetime of business, and you'll look forward to seeing that customer come in the door, no matter what the economy looks like.
