Sending customers to competitors

[ftm42]

We have a customer who wants a 2nd order from a range we no longer do. We know where the range went but are really keen to keep the customer with us. Do we try to sell our replacement range, or give in and send the customer to a direct competitor, who now does the previous range?

my plan is to try to sell them 2x new range so that they have a replacement for the previous range plus a new one to match. Any ideas if it's reasonable practice to refuse to tell them how to get hold of the old range?

 

[Fred_the_frog]

Well what sounds better to you?

"Unfortunately we don't sell this range anymore, however if you wish to purchase it we know that XXXX still sells it. Would you like their contact details?"

or

"Unfortunately we don't sell this range anymore, but would you like to buy from the new range instead?"

 

[billie1]

I would try to sell them the replacement range. Give them all the benefits of the new range and why you think its a better product.

 

[deadgoodundies]

We send customers to competitors quite often if we don't have what they want in stock (and can no longer get it).

Depending on how carefully your word your reply to the customer can mean that your company will stick in their mind for future purchases i.e that nice man/women who helped me find what I really wanted.

For example my approach would be no sorry they don't make that one anymore but give me your phone number/email and i'll have a scout around to see if anyone else still stocks if for you. If I come up trumps i'll call you back in a mo.

and if I find what they want i'll check that the competitor has the size and colour they want and give the customer a call or email back.

If it's a online company then i'll check if they have an affiliate program, sign up for it and then send the customer the affiliate link so then at least i'm getting a kick back for the info.

 

[wanttolearn]

Without more detail

Your question is in answeable

Ie, mcdonalds say they no longer do a pound saver cheese burger, do we send them to burger king

 

[Psl]

If you know where the range went, buy it and sell it to your customer.

 

[estwig]

Negotiate a 'commission' from your competitor for sending the business their way.

 

[ftm42]

estwig - just tried working out the affiliate program - can't even figure out how to fill in the forms!!

 

[Gecko001]

I would not volunteer the name of a competitor that sells the product. That would sound a bit suspicious to a customer, as if you have some sort of ulterior motive for doing so. However if asked whether you know of someone who sells the product you might decide to give them the name of a competitor my saying "you could try ABC etc" or if you decide not to you could politely say something like "well I think some others do it but they are unlikely to do me any favours by sending business my way So I cannot really say"

It depends on the size of the firm. Customers do not expect to be referred to competitors if they are dealing with a big firm, but sometimes expect it with the smaller firms in my experience. This is because it is really only the owner of the firm that can make that decision so they will ask if they know that they are dealing with the owner. As owner of my business, I have sometimes referred people to a competitor that I know has done the same for me and it has been no problem and I have gained business if anything by it, but if I had employees working for me, I would not allow them to do it without my permission as it depends very much on the situation.

 

[estwig]

estwig - just tried working out the affiliate program - can't even figure out how to fill in the forms!!

It may seem like a lot of effort for just one punter, but in six months time, when you have either put loads their way for nothing, or just binned the punters altogether.

You could be kicking your self for not doing it now!

 

[estwig]

I would not volunteer the name of a competitor that sells the product. That would sound a bit suspicious to a customer, as if you have some sort of ulterior motive for doing so.

A bit suspicous!!

 

[Fred_the_frog]

I would not volunteer the name of a competitor that sells the product. That would sound a bit suspicious to a customer, as if you have some sort of ulterior motive for doing so. However if asked whether you know of someone who sells the product you might decide to give them the name of a competitor my saying "you could try ABC etc" or if you decide not to you could politely say something like "well I think some others do it but they are unlikely to do me any favours by sending business my way So I cannot really say"

It depends on the size of the firm. Customers do not expect to be referred to competitors if they are dealing with a big firm, but sometimes expect it with the smaller firms in my experience. This is because it is really only the owner of the firm that can make that decision so they will ask if they know that they are dealing with the owner. As owner of my business, I have sometimes referred people to a competitor that I know has done the same for me and it has been no problem and I have gained business if anything by it, but if I had employees working for me, I would not allow them to do it without my permission as it depends very much on the situation.

If you said that to me: "well I think some others do it but they are unlikely to do me any favours by sending business my way So I cannot really say" then i'd never shop with you again. It's rude and selfish.

I don't think there is any problem with suggesting another company. The customer may tell the other company that you recommended them so they may even return the favour.

 

[Gecko001]

If you said that to me: "well I think some others do it but they are unlikely to do me any favours by sending business my way So I cannot really say" then i'd never shop with you again. It's rude and selfish..

Shop keepers have said it to me and I have not thought it at all rude or selfish. It is stating exactly the situation. It is no reflection on you the customer so I cannot see how you the customer would be offended

And I have been pleased to shop there again.

 

[Grumpybloke]

I have quite a few times bought something from a competitor if it enabled me to fill the rest of an order quickly. OK, I may have lost a few quid but if you keep a customer happy most times they will come back, and most importantly, it deters them from looking at my competitors.

 

[eldirect]

I think it is fine. I would offer them the new range, and a bit of discount to go with the 2x new, if they are hell bent on the old range say no problem, I will source you one. Buy it from comp - even if you make no cash and sell it them. Or politely point them your competitors way. Totally depends on the product and product value/future customer potential.

If they are worth a load of cash in the future make sure you keep them. If its more a one off send them to your competitor, they will return to you one day.

 

[Nord20]

I would do both: tell them you don't stock it any more, but you have a better replacement and maybe offer a discount if they want to replace the existing with the new range (although that is unlikely, as they have already forked out once). They might be tempted by the superior new range.

However, it may well be that they simply aren't interested in either purchasing two of the new range, or having both at home, so pointing them in the right direction to get another of the old range will put you in a good light and make it far more likely they will return to you in the future.

In short: do whatever you need to do to make them happy.

 

[SillyJokes]

Ok, here's the thing, you need to have a happy life. You have a customer you can't really help but you know someone who can. Just send them on their way with the recommendation. You will appear to be knowledgeable in your field, something that counts for a lot, you won't be spending too much time on a customer who ultimately wants something you can't provide.

As for sourcing something then signing up for the affiliate programme - give me strength.

Look for the next person who will be happy with your range.

 

[Peanut Butter Man]

Ok I agree with those that say buy from a competitor and sell on, but what if the customer wants to see it, feel it, sit in in or test it?

Maybe you could look for a competitor that has the lower range but that dont deal in your range, you may both have positioned yourselves at different markets because you don't want to be all things to all men.

Build a relationship with the other firm, are they good at what they do (you dont want to pass customers to clowns, that would reflect badly on you) you pass work to them, they pass work to you

If I went to a shop and was told 'sorry we don't carry that but we know a good firm that does' I would be happy and would probably go back to you as you showed that you were putting me first as a customer and not just after my cash.

It's not just about the money.

 

[Spongebob]

Whever I have been in this situation I would not dream of sending my customer to a local competitor and instead would do what I could to get hold of the goods.

Do you not have any friends in the trade in other parts of the country who could get the stock in for you so that you can fulfill the order?

 

[Fred_the_frog]

Ok, here's the thing, you need to have a happy life. You have a customer you can't really help but you know someone who can. Just send them on their way with the recommendation. You will appear to be knowledgeable in your field, something that counts for a lot, you won't be spending too much time on a customer who ultimately wants something you can't provide.

As for sourcing something then signing up for the affiliate programme - give me strength.

Look for the next person who will be happy with your range.

Yeah exactly this. Likelihood is that if you provide the customer with the old range (that you've just bought from a competitor) then they're going to come back to you as they know you still stock the product each time they need it.

Each time they come back you're going to have to buy it from the competitor and sell it to the customer without making any money. What's the point of keeping a customer who wants what you haven't got?

It could be months, years or decades before they decide to switch to the new range, so why bother with the hassle of keeping the customer when you could focus your efforts on getting more customers elsewhere.

 

[deadgoodundies]

As for sourcing something then signing up for the affiliate programme - give me strength.

I can't see what issue you would have with this?
It all adds up and i've made a couple of thousand doing this over the past 2 years, Money I wouldn't of had otherwise and it only takes about 10 mins

 

[SillyJokes]

I can't see what issue you would have with this?
It all adds up and i've made a couple of thousand doing this over the past 2 years, Money I wouldn't of had otherwise and it only takes about 10 mins

as much as that really? That's excellent. But you don't have to sign up every time, surely? Once you are on Figleave's scheme for instance you just keep sending the traffic? I guess it depends upon the item. In my line there isn't the money, or the decent store with an affiliate programme.

In my experience, you sign up for the scheme, faff about, and never reach enough commission to get a payout. Can you tell I am disenchanted by affiliate programmes?

 

[deadgoodundies]

No, what I do is I've already got accounts with the top 5 affiliate networks as an affiliate so chances are if someone has got an affiliate program then they will be on one of those.

So you don't need to keep signing up to the same program (like figleaves), you only have to do it once and because i'm sending a email link you don't have to worry about things like cookie length as it would new session.

When I join up to an affiliate scheme I just add it to a spreadsheet and include the tracking url into the next cell so that when I need to I can see exactly who they are with and what the tracking url is so it's just a case of copying and pasting

Then the revenue just builds up over time (including if they do happen to go back to the competitor I will get the residual depending on the cookie length)