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Some days ago, I overhead a conversation where a rep of an institution had tried to justify why his outfit was charging its customers a certain amount for services rendered.
He compared his institution to another that delivered far better services than his.
His mistake.
You see, I've got two barbers who are good at their jobs. They both deliver the same services, but the quality of their service delivery, differ.
The first one has an air-conditioned salon, nice sitting area, with newspapers and magazines, and a fully stocked fridge of customers' favourite drinks.
He uses smaller clippers, rather than razor blades in trimming the edges of customers' hairs. Instead of the 'usual alcohol' used by the second barber after a shave, he uses Nivea's after shave. He disposes off the heated towels used on cleaning clients' head before applying hair cream to it. He's got a back up electricity power system that ensures customers are attended to, even when dumsɔ hits.
He uses smaller clippers, rather than razor blades in trimming the edges of customers' hairs. Instead of the 'usual alcohol' used by the second barber after a shave, he uses Nivea's after shave. He disposes off the heated towels used on cleaning clients' head before applying hair cream to it. He's got a back up electricity power system that ensures customers are attended to, even when dumsɔ hits.
My second barber doesn't have these investments to enhance his service delivery. He therefore cannot charge the same rate as my first barber.
In service delivery, we are sometimes tempted to charge rates based on what our competitors charge, without doing.a proper homework on improving our services to match the rates we are charging.