Let us imagine a scenario.
1. Your sales team works very hard to convince someone to sign a contract – well more a “statement of intent”, really – for your services.
2. The customer will complete the sale – handing you a pile of money in return for us building them a web thing – as soon as we waive the startup fee.
It should be noted that we charge a startup fee. Like many service providers that fee is fixed, in the sense that it embodies a basic set of services, in return for a slightly lower monthly fee and no commitment in the contract. As well, like many service providers, we price the startup fee with the assumption that we regularly offer routine discounts, sales, etc.
3. After a long series of negotiations, we come to a minimum startup fee and services bundle for the customer, who declines it, saying they will begin service when the fee is waived.
At this point you’d think it would be over, right? Otherwise I’d not be posting, obviously.
4. Customer hits TEH GOOGLES and finds some other company offering a similar service for $49/month and NO SETUP FEE! Customer immediately signs up with this competing service.
5. We receive an angry call, positively fuming, from said customer, demanding service and support. They cannot get the web thingee working! There’s no way load their images, and their text, and it’s vitally important this get up and running now!
Now at this point, my business strategy would be to tell them to kindly fuck off and never, ever call us again; I’ll mail you the shredded copy of the signed contract so you can be sure we’ll never hold you to it. That’s also not the best strategy to grow and build a business, which is why I’m not speaking for said business in any capacity.
Still. It should illuminate just how nuts things are out there in the “long tail” and why I’m a little on the grumpy side most of the time.