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What would you do in the following situation: You have agreed over the sale of some kind of equipment. It is a $10 million buissines and the buyer of this equipment is a very important costumer. However, the opening date of the facility where the equipment will be installed is in three months, but the problem is that the delivery of this equipment can not be complied before a six months time period , as it is previously defined in the contract with the producer. Given that the buyer can not delay the planned opening, what would you say to the customer, considering you may loose the opportunity for a $10 million buissines? What would be your strategy in order to keep that custemer?
Options:
Involve the producer directly with the customer to realise the importance of the delivery period. Jointly attending to the customer will have a greater impact. May be the producer can explore option of diverting the equipment meant for some other location which could be accomodated.
Explore the option of putting some demo piece until the delivery takes place.
Check with other selling partners of the producer if they can be of some help.
Find out the opportunity loss that the customer may have due to delayed delivery and if there is any possibility of compensating that jointly with the producer. Like some freebies, extended free service,etc.
If nothing works out then take it as a learning for future for making the right commitment.
If the company does not have what it needs why make a commitment? This means that you have to match the customer requirements and deliver on time when you promise or you will risk your credibility which is the base for generating this customer and other customers interests
Brainstorm/explore other options and communicate them with your customer as soon as you can or even partner with the customer in finding a solution
Overall, do not spoil your relationship with your customer by hiding the facts!
Best way for me be honest with your client. Explain him the whole scenario and ask for solution if he had some. you might loose this but customer ll keep you in mind for next time. Present him some innovative alternate ideas so he might change his mind.
I highly agree, never commit on promises you can't perform. Better make a sustainable sale rather than selling.
I learned a lot. Thanks for sharing your opinions.
First of all, we must treat all customers equal.customer should not be treated by the value of their order. If we cannot honour the delivery commitment, then it is always better to inform the customer the inability. sometimes we might lose the order but at least the customer will of course respect your straight forwardness and if he can. he will try to definitely pass on the order to you. clients prefer straight forwardness.
Commit only what you can do and always do what you commit. As soon you get to know the delay, it must be conveyed to the client with proper reasoning and facts and hope for the best.
In some businesses, it is possible to hold back the production of few other products to prioritize critical orders OR it may be possible to stagger the delivery if there is a big quantity of items to be supplied OR if it is not a customized product, any ready products for some other orders can be supplied to the high priority customer. But whichever option might work, at the end of the day you will be denting your imagine in front of one customer or the other in such cases. So best policy is not to over-commit and to be as honest with your customers as possible. A long term loss is way too worse than a short term gain, no matter how big or small.
Its better not to commit anything which you cannot do. Making a false statement and not living to your commitment would be a disaster for all future aspects. Alternate arrangements could be considered to meet the customer's deadlines.
1. By involving co-partners
2. There could be another possibility. Sometimes customers can extend their deadline provided you can add value which others cannot. Try to search for those possibilities.
