Putting a Price on Quality Service Delivery

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October 1, 2010
That’s Good HR recently participated in the bid process for a large contract that had four main components to the evaluation. These included:

  • previous experience or past performance
  • technical approach to managing the account
  • staffing solution for the needs of the customer
  • price

Pretty standard proposal requirements. As the incumbent on the account, we had worked very hard over the years to ensure that the service we provided went so far above and beyond the standard that there would be no question that we were not only capable, but we were passionate about taking care of our customer and our employees. The amount of time and effort spent maintaining this account equated to three full time dedicated employees as well as additional administrative support. This was not something we took lightly.

Getting to know the customer needs in great detail allowed us to manage those needs so specifically and expertly that the efficiency of the departments we serviced contributed to the overall effectiveness of the customer. Our retention strategies and regular visits to the site allowed our employees to have a constant resource to help them manage their employment effectively so they could focus on the work product.

As you can imagine, none of this can be done for free, whether you are in the Indianapolis staffing industry or any service industry. We would love to be able to provide the superior level of service as a free "add on", but it is a fundamental part of the overall product we provide and cannot be separated from our brand. It is not an "a la carte" menu where you pick and choose the levels of service and the quality of that service based on how much you want to spend.

Little did we know, that is exactly how some services operate. They provide a bottom dollar price that barely covers the cost of the employees, leaving little to cover the service quality or any additional customer service requirements you might have, want or need. The more amazing part of this discovery is that in this situation; price outweighed the other three factors combined and we lost the contract.

So that brings me to the question – can you really put a price on quality service delivery? Can you afford to cut corners and take a hit on service when you are dealing with something like human capital and work production? Can the service your company provides to it’s customers afford to be compromised because you pay less for those who help you provide it?  In this case, apparently it can. We will see how it all plays out, but for us, we will not compromise, even if you can.  That means we will likely always be a small locally owned and operated business. That’s okay for us and good news for our customers and our employees who want, need and require the highest quality of service delivery.

So I ask again…can you put a price on quality service delivery? If so, what is it?