Teachable moments #51 - When Words Cost More Than Money: The Peril of Poor Communication

We've all been there. A seemingly straightforward agreement goes sideways, leaving both parties frustrated and the relationship strained. I recently experienced this firsthand, and the fallout served as a stark reminder of the critical importance of clear communication.

Our team had the pleasure of working with a potential client. Our BD expert, in an effort to be accommodating, sent a message that seemed clear: "We sincerely value our working relationship, and following a discussion, we would be pleased to maintain the same rate for the additional evening sessions."

The client, however, interpreted this as an offer for more sessions at the same overall price. What we meant as "the price per session block remains the same," they understood as "you get double the sessions for the original price."

The ensuing conversation was…uncomfortable. While we were eventually able to clarify the misunderstanding, the initial damage was done. It highlighted a crucial business lesson: ambiguity is the enemy of trust.

So, what can we learn from this near-disaster?

• Clarity is King (and Queen): Never assume the other party understands your intent. Be explicit. Use precise language. Avoid jargon or potentially confusing phrasing.

• Context Matters: Provide sufficient context to avoid misinterpretations. In our case, explicitly stating "the rate for each set of sessions" would have prevented the issue.

• Confirmation is Crucial: Always confirm understanding. A simple "To confirm, we are charging X for the additional sessions" can save a lot of headaches.

• Written Records are Your Friend: While verbal communication is important, always follow up with written confirmation, detailing the agreed-upon terms.

Poor communication doesn't just lead to misunderstandings; it erodes trust, damages relationships, and can ultimately cost you customers. In today's fast-paced business world, clarity and precision are not just good practice; they are essential for survival.