Not Every Client Gets To Sit In The Front of the Plane

By Tim Williams

By Tim Williams

When you fly, if you want to get first class seating, hot meals, and all the bourbon you can drink, you have to pay first class prices.  How is it that in professional service firms virtually all customers get quick turnaround, ultra-responsive service, and access to the agency’s best brains regardless of whether they are low-paying, low-profit or high-paying, high-profit?

Most smart businesses practice not only price discrimination (different prices for different kinds of customers), but also service discrimination, meaning not every customer gets the same service.  For one thing, treating low-value and high-value customers exactly the same not only makes your high-value customers feel underappreciated; it’s also economically unsustainable.

Pricing “fences” tell clients what they can expect to get for the price they are willing to pay – not only in regards to the deliverable, but the level of service.  While every client will be treated with courtesy and respect, low-paying clients shouldn’t get all the perks that high-paying clients do.  Treating all clients exactly the same is not only business insanity, it represents one of the biggest profit drains in agencies today.