Generosity in business can pay long-term dividends

At what felt like the height of the recession in May 2009, I was downsized by the consulting company I had been working for. Even though I should have seen it coming, I was shocked, devastated, and panicky. Was I going to find another job? Would I have to go back to waitressing?

I had an appointment scheduled with my hairstylist, Carolyn Bakken, for the following day. Carolyn is an outstanding stylist who deserves the fee she charges — but I knew I couldn’t afford it until I found a new source of income. I decided to keep the appointment so I would look good for interviews and such. But when I was in her chair, I asked Carolyn if she could recommend a competent stylist who charged a lower fee.

Carolyn was quiet for a moment and then said, “How about if I do your hair for half-price for the next three months?” I was stunned. If she had offered me a 10% discount, I would still have felt unable to pay it. But 50%? You bet! And the fact that she thought I’d be able to pay her regular fee in three months felt like a strong vote of confidence. I felt tears coming to my eyes as I gratefully accepted her offer.

Three months later, my new business, Gail Golden Consulting, was getting off the ground and I was able to return to paying her full fee. And I will go to Carolyn’s salon until the day I die.

The benefits of generosity in business

Carolyn’s offer was truly generous. In retrospect, I realize it was also a smart business move. If she had referred me to a competent, less-expensive stylist, I might never have come back to her. By setting a three-month limit, she was not committing herself to undercharging for her work forever. And by providing meaningful support to me at a very difficult time, she earned my life-long loyalty as a customer.

I have found that generosity and good business often go together. Generosity is important when you’re trying to acquire a new customer. That’s why businesses often give out free samples of their products and coaches will frequently offer a free hour of their time to potential clients.

Generosity is also important when you’re dealing with a current client. I want my clients to always feel they are getting more than they pay for. Providing value to your customers in ways that that go beyond the actual “sale” makes them feel important and builds loyalty.

People hate feeling “nickel-and-dimed.” Years ago, when I worked for a high-end restaurant, the manager insisted that we charge customers extra when they requested additional butter for their rolls. It made us seem really cheap, and the customers were usually surprised and a little disappointed.

Of course, I am not talking about giving your work away for free or not charging full value for what you do. If your business is providing a top-quality product or service, you should charge a premium price. But responding to a customer’s need with kindness, as Carolyn did, or providing extra perks that make your client feel valued — that’s both generous and smart business.

If you want to learn about ways to incorporate generosity into your business model, contact us.