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5 Star Johnny · #11 (**permalink**) 04-11-07

I assume you have a good relationship with the decision maker at the location you are currently servicing. If you haven't already, arrange a sit down to collect ALL the information surrounding the change. The obvious thing is cost per unit, but dig deep and ask exactly what parts of your quality & service they may have been dissapointed with, if any. Get them to reconfirm their satisfaction with your company. You may find out that there is something, no matter how small, that they're not completely satisfied with. At least then you can respond to that complaint, and take it with you for the future.

I used to deal with this exact situation in a different industry (wood packaging) that had a lot of small, start-ups. However, I was usually dealing with hundreds of thousands of $$$$ in annual business for my company. We had large local or regional clients that would get bought by a larger national or global company. Right away, they wanted to produce more profit and the purchasing department would be the first line of attack. Suddenly, pricing had to be cut and major re-bidding was under way. Even if they didn't make a switch, they got you to cut your pricing to keep the job. If I made the decision that it wasn't worth supplying our product for the pricing they were looking for, I cut the customer loose. Yes, it hurts losing a big account, but better than loosing profit just to turn $$$$.

What usually happens, and I think is pertinent in your case, is that when the company switched, the new vendor couldn't handle the account, or messed up something big. The customer comes knocking back on your door, but expects you to match the other guys pricing. If this happens, don't be too quick to give away the store. Sit down with the decision maker and find out EXACTLY why they're dissatisfied with the new guy, and why your service demands the price it does. You may have to make a small price concession, but don't give away the store. Normally, the corporate office never seems to figure out that certain purchases of goods or services need to stay controlled on the local levels. Certain things can't be bought at an "across the nation" price structure because the markets vary so much.

The one thing I would suggest you learn from here is that you have way too much business in one basket. That's a sure fire way to end up out of business. Business changes too fast today to believe that you'll keep a certain customer forever. Especially if it's a national, glogal or even regional "big boy" business. While I wouldn't discourage you from doing all you can to keep that client, or keep an eye on them to get back in if the other guy fails to satisfy them, I would encourage you to "beat feet" to spread out your client base. Good Luck!