FROM THE PUBLISHER

HOW MANY TIMES have you walked away from a potential customer because of price? Have you ever had a discussion that involved your potential customer using the phrase “But, Brand Y Roasting will sell me Costa Rican coffee for 25 percent less than you?”
     How do you know when the sale just wasn’t worth it?
     No matter what business you are in, be it publishing magazines, producing swizzle sticks or roasting coffee, some competitor will use price as their sole weapon against you, and it can have two effects: it will either make you extremely cranky or it will tempt you to sell your product at a lower price. Neither of these outcomes is healthy; the first for you, the second for your business.
     Avoiding this trap involves a couple of time-honored practices employed by all successful businesses. First, identify and be able to communicate the unique traits that define your business. Service and quality are leading typical candidates, but understand and be able to explain to anyone, anywhere why your service and quality are the best. Is it being available 24 hours a day? Is it consistent blend taste from year to year?
     For Roast, some of these traits are the commitment to quality that drives our editorial and design. We strive for a beautiful, technical publication that serves as an educational resource for the entire coffee industry. It defines everything we produce, from our marketing materials to our website to our promotional items.
     Once you understand and can communicate these traits, write them down. It doesn’t really matter if it is a slogan (Roast’s is: “Dedicated to the Success of Coffee Roasters”), a mission statement or a business plan (or all three). Just make sure that you are able to refer to these qualities weeks, months and years from now. New projects and initiatives will stand a much greater chance of success if they complement your raison d’etre.
A second technique for avoiding the cost battle trap is to know that you will have to walk away from some accounts. This is not a bad thing. A client who selects you based solely on price will have no problem dumping you when a competitor undercuts your price. Your guiding business principles will allow you to recognize customers who will not appreciate timely service and excellent quality before you waste time negotiating an unsustainable price.
     The intent of this column is not to discourage businesses from the continuous pursuit of improving efficiencies to provide customers with the lowest possible cost. I just wanted to highlight the fact only businesses with strong underlying principles will be able to sustain success in the long term.

     Warmest Regards,
     Connie