Project X

In November an email arrived from one of our account customers saying ‘thank you for being such a valued supplier’. It went on to declare how important our relationship was and then requested a reduction in prices by 10%. They call it Project X and are applying it to all suppliers regardless of their size, history or credibility.

From time to time customers will inevitable look at their costs and try to reduce their outgoings. At this point you have to ask yourself if you wish to retain a customer by altering your costs or if it is better to lose the customer for a short while until they recognise the quality and value you deliver is difficult to find elsewhere.

My response was to stand firm in the negotiation process but in December the customer moved their business. Coincidentally because of their complex invoicing system and extended payment terms it left one alternative supplier available to them which is a taxi firm who charge £130 per week ‘settle’ to their owner-drivers.

At DrivenByQ we don’t charge settle because our overheads are so much lower. We are a virtual company with no need for bricks and mortar and our administrative costs are reduced by our cloud system. Similar to the taxi company however, we do take a commission from each account journey.

The difference is that after commission, our drivers still receive between 20% and 50% more than a driver at the taxi firm. That means they are motivated, positive and willing to invest in proper vehicles. It ensures we attract the right people who understand the importance of quality too. I wonder how long it will take the customer to realise that?