Gold Coast Mobile Bookkeepers and Bookkeeping Services

At one of the local DVD rental stores, the new owner (we’ll call him Dave) is trying to build up his customer base. One of their customers ( we’ll call him Bob) have been members of that store for some time, and welcomed the change of ownership.

The store promotes hiring 7 x “weekly” DVDs for $10. Simple enough, you would think. You select seven DVDs that you can hire for a week, for $10. So Bob selects some “weekly” DVDs, only to be told that they are “New Release Weekly” DVDs and Bob has to pay more.

“But how many days are in a week?” Bob asks. “Seven”, was the reply. So why aren’t you charging us the $10 ?

“Well, they aren’t weekly DVDs, they are New Release Weekly DVDs”
“Oh, so weekly DVDs are not the same as New Release Weekly DVDs?”

Bob’s not a three dollar customer, Bob is a $500 customer

Okay, so Bob may have had a misunderstanding based on poor advertising by Dave. It’s only a difference of three dollars (for that one sale). However, the attitude of Dave was one of indignance, that Bob was stupid, and because it was Bob’s mistake Bob would certainly be paying for it.

Dave didn’t consider that Bob can choose which store he can rent DVDs from, and why does he need to be insulted at this store, when Bob can go to another store and be treated with respect. The obvious jesture would have been for Dave not to worry about the three dollars, and retain a happy customer.

What Dave achieved was the three dollar sale, and NO MORE ever, from one customer. Dave’s not a bookkeeper, and maybe he doesn’t rely on bookkeeping when running his business week to week. Because as bookkeepers, we would tell Dave that what he didn’t consider, was the fact that Bob was not a three dollar customer, Bob is a $500 customer (annually) .[If you’re not sure about this concept contact us for more information.

If the DVD store owner did that with 10 customers, he’s lost $5000 annual turnover - But Dave’s made the extra $30, and been able to make his point.

Well done Dave! Will you still be in business in twelve months time? Or will you realise how much a three dollar customer is worth?