One of my clients recently posed the following issues: 1) How does a local, small business compete with an Internet company? and 2) in this economy, so many customers attempt to get a discounted price from a small business owner, when they would never do this with a large, box retailer. How do I provide good customer service in these situations?

1) I too have begun to purchase items over the Internet - sometimes with great success and other times with great frustration! A local, small business can compete by providing the personal service the Internet companies can not. Recently, I had a problem with a purchase and called the company's help desk. I spoke with 4 different CSR's - none of whom spoke understandable English! I was so frustrated when I finally completed the call, that I determined to complain to the company and suggest they move their call center back to the good ole USA!

Also, if a customer needs to return an item, the process is much more involved with an Internet company than a local business.

The key is to educate your customers. Let them know what you can do for them that the Internet companies can not do. Make this a part of your advertising campaign!

The old adage "The Customer Is Always Right", is totally wrong! It should be "The Customer Is Always The Customer"! Which is very true. However, when a customer contacts your office or business with a complaint or problem, they may not have all the information they need, or may have a misconception regarding an offering, or product.

Some businesses, such as the utility companies I've worked with, have constraints relative to charges and billing that can not be changed; however, there may be other ways to handle the complaint which will give the customer satisfaction. Giving the customer complete, accurate information helps them to understand all sides of the issue. I've used this statement many times, "Here's what I can do for you". This takes the focus off what I was unable to do, or why I couldn't do what the customer wanted me to do for them.

Regardless of whether you can give the customer exactly what they are asking for, always treat them with the respect they deserve, just because they are a fellow human being. Isn't that the way you want to be treated when you're a customer?

2) When dealing with a customer who is asking for a discount, several things need to be taken into consideration. First of all, do you know for a fact that your prices are competitive? If not, find out what others are charging. The prices should be fair and allow you to make a fair profit also. Show the paperwork to the customer, showing them your cost and your markup, telling them that you know they would agree that you should be able to make a fair profit.

When customers feel they are being given complete, accurate information, they are more likely to agree with you. Also, how much business does this customer do with you? Do they refer other customers to your business? Give a reasonable discount if you think it would be advantageous to your business dealings with this particular customer. However, the bottom line is you must make a profit to stay in business. Everyone would have to agree with this.