This column is directed towards businesses, but patrons of businesses should also find it interesting. When I initially ask this question of new clients the answer is more often than not, "We have customers." Sadly, they are usually correct, because they perceive that only lawyers and architects have clients. Customer is defined in the Merriam-Webster dictionary as "one that purchases a commodity or service." The word customer connotes a one-time relationship.

Customer based relations are based on "let the buyer beware," and there is no trust between the customer and the vendor, leaving price as the major consideration. The vendor tries to take as much money as possible and the customer tries to pay as little as possible. Customer transactions are money based, with price being THE major consideration.

Customer based relationships also require continually attracting new business, which is expensive. The completion of the financial transaction ends the customer-based relationship, and future transactions require attracting the customer as new business, which is expensive.

Client is defined as "one that is under the protection of another" or "a person who engages the professional advice or services of another." Client transactions are based on a relationship with a company or individual. The difference between customer and client relationships may be summed up in one word: trust. Businesses that develop clientele relationships focus on repetitive transactions, each transaction building on the last, with price generally NOT the major consideration. This is not to say price is not an issue, but it is usually not the primary issue. Trust is the primary issue.

The word client connotes a repetitive, or ongoing, type of relationship. The client trusts that the company, or salesperson, will provide them with what they need at the best-cost possible. Clientele transactions are profitability based, with the transaction being profitable for both supplier and client. Because clients return for future transactions, there is a reduced need to attract new clients, and word of mouth is a primary source for new clients.

A good example of customer vs. clientele relationships is Yugo vs. Honda. The Yugo was promoted on price, with little concern given to customer satisfaction. Honda converted their motorcycle clients to automobile clients with great attention given to client satisfaction. The result: many of you that are younger have never heard of Yugo, while a motorcycle manufacturer from Japan brought the U.S. automobile industry to its knees.

If clientele relationships are more profitable than customer relationships, why doesn't everyone have clients? Because it is easier to develop customers than clients. Less profitable, but easier. Clientele relationships, like all relationships, require work, commitment and trustworthiness. How many trustworthy salespeople do you know? Fortunately, I can say I know many. Most salespeople, given their choice, would like open, honest, trustworthy transactions. However, many salespeople feel pressured to make any sale possible. The result is that salespeople do not trust their management and the customers do not trust either. A good example of a non-trust situation is a typical customer based new car sale. The first issue of non-trust is the car sticker price. Everyone knows that the sticker price is not the actual price, so the sales person and customer work out a price that is submitted to the sales manager. The manager typically rejects the price and counters with another price. The customer winds up feeling the salesperson does not have the authority to negotiate, and does not trust the sales manager with whom they have no personal relationship. The transaction is reduced to a cash exchange.

Conversely, I not only expect, but also demand, that my suppliers treat me as a client. I recently purchased a new vehicle by calling my automobile supplier and telling her what I wanted. She returned my call and suggested I purchase something slightly different that better fit my needs. She was prepared with price and delivery options, and the transaction was completed. I did not shop my supplier because I am confident she will protect me by supplying me with the vehicle I need at the best possible cost. I am also confident she will continue to protect me if problems should arise. We have a clientele relationship based on trust.

So the question still remains: Do you have customers or clients? For me, I refuse to work with customers or vendors. My time is too valuable, and my clients and suppliers deserve my attention.

TO CLIENTS

The clientele relationship is a two-way relationship. You might even call it a partnership. If you desire suppliers that are trustworthy, you must also be trustworthy. Your suppliers must be able to trust you in negotiations, and you must reward trustworthy suppliers with your loyalty and business. This is not to say you should go blindly into the dark, but people that treat you as a client deserve to be treated as a partner.

Not every purchase should be client based. The purchases of commodities are usually price based. A good example of a commodity-based purchase is laundry soap. You are not looking for advice or service, only the product you desire to purchase. A good example of a clientele-based purchase is buying a suit. When we purchase a suit we desire an individual that can guide us through the maze of fabrics and colors to achieve the desired result we seek. I have an individual that knows my tastes and assists me in all my dress-clothing purchases. If I am on the road and need a particular item I call him and he usually has something at my hotel the next day.

If you continue to base every purchase on price alone, you reduce your transactions to a cash basis. You become a customer and you deserve what you get. Not everyone out there is honest, so reward the honest people you meet and you will enrich your own life. There is a universal truth: "What goes around, comes around." Test the truth and see for yourself.

Those of you who read this column are my clients. You are under my protection and I want to hear from you. If you have any topics you would like to see addressed in future columns, please let me know by e-mailing: jgadams@successfulselling.org.