Issue link: http://psai.uberflip.com/i/1402657
PSAI Association Insight, July 7, 2021 I 25 Calling on Competitors' Customers: A Hot Idea that Leaves Some Cold (continued from page 24) Yes, cold calling others' customers is fine, and you should do it. • "If you just sit by the phone and wait for it to ring you might be waiting awhile … why do businesses hire sales people? Isn't it their job as a sales person to sell? You never know if the competitor is doing their job or not. If they are, then [the existing provider has] nothing to worry about. We move on [if that is the case], but if there is a problem, that is where we can help. The reason companies hire sales people is to keep the competitor on their best game. That is what is best for business." • "We earn every customer we have and not because we give away our services. If [our competitors] would raise standards as well as increase their average price for their services, honestly, everyone will win. […] We don't force customers to make the change. The previous service provider helped the customer make the choice. I'm happy to facilitate that change!" • "Sometimes customers have been with the same firm so long they don't know what they are missing. There is nothing wrong with showing them they have options." No, calling on others' customers is bad news and you should "just say no." • "I will send an occasional courtesy email or Facebook message to planners of upcoming events that haven't called on us previously. I don't spend my time chasing people down for business anymore. I tried it when we first got started but I found out all it does it open up a bidding war and we don't have time for that." • "I earn my business by service and reputation … it's not failed me yet." • "That's not who I want to be." • "Glad to hear that majority thinks it's low and dirty [to call on established job sites]." In general, the feeling among portable sanitation operators seems to fall into two camps: (1) those who feel an established customer should be left alone and (2) those who feel any customer is fair game. Both are valid business positions. Assuming that laws are followed and truthfulness is the watchword, both are consistent with the PSAI Code of Excellence. Tips for Dealing with the Conundrum of Cold Calling Others' Customers. This article is not intended to take a position on whether a company should or shouldn't reach out to the customers of other companies. To say it shouldn't be done would potentially violate anti-trust laws. To say that it should be done would be, in essence, suggesting that some business owners compromise their values. Instead, the contents of this article are intended to provide information to guide your thinking, whichever side of the debate makes sense to you. If cold calling others' customers violates your business principles, don't do it. • Focus on the strategies and values that you want to define your company and do them excellently. This is more likely to bring you success in the long run than undertaking a business strategy you don't believe in. • Recognize that others may not share your values. That doesn't necessarily make them bad competitors. If they stick to the truth, follow the law, and otherwise follow the Code of Excellence, they are on solid ground. So spend your energy figuring out how to show your customer you're the better choice. Resenting your competitor isn't hurting their ability to win business, but it does drain your energy and focus your attention on unhelpful things. • Be sure you are following the Code of Excellence in your own operations. Avoid the temptation to bad-mouth the competitors who annoy you, however tempting it may be. • If your competitor breaks laws – such as disposing illegally – to maintain lower prices, report them to the relevant authorities. If they engage in activities that harm your business through legally questionable tactics (see this article for examples), contact your attorney. (continued on page 26)