What do I do when a customer says they can get services down the road for a cheaper price?

I am always amazed at how many customers say this to business owners in our industry. These same customers would never go into a gas station and say, “I can get it for less at the station down the road.” If they can get it down the road for less, then they should go down the road.

It is not ever practical to base your prices on another business. You have no idea what their expenses are down the road, whether they are profitable, or even if the customer is telling you the truth. Challenge that customer with a polite question, such as, “OK, so why are you here?” It may turn out that the business down the street cannot make the customer’s deadline, or the customer might have an outstanding bill down the road, or it is their ex-sister-in-law’s business.

Whatever their issue is with the other business, it completely removes the pricing from the conversation. Price the order so that it makes sense for your business. The customer can place the order, or not, but you will not be stuck working for pennies.

—National Network of Embroidery Professionals