Boris is the wise ol’ founder of TNW who writes a weekly column on everything about being an entrepreneur in tech — from managing stress to embracing awkwardness. You can get his musings straight to your inbox by signing up for his newsletter!

When I bought my first house, I wanted to make some home improvements and needed tools.

While I was mostly looking for a drill, I was amazed when I happened upon a great deal at the hardware store. An incredible 3-in-1 machine that would solve all my present and future needs: drilling, sanding, and sawing.

It was made of a heavy base that contained the battery and motor. Then on top of that, there was a socket where you could attach the different components to turn it into a drill, sander, or saw.

I was in love with the versatility of this amazing machine — I mean 3-in-1, how incredible! — but then I slowly realized it had a big downside. It certainly could do three different things, it just did those three things poorly.

If I had bought one normal drill, it would have done its job just fine. But instead, I purchased three machines that didn’t do any of their jobs well. It was like the Swiss army knife I had as a kid all over again. It did a lot of things okay, but nothing particularly well.

And this lack of focus and the idea of jamming versatility into products keeps cropping up.

The sustainable, repairable, and ethical Fairphone is a great example of that. The idea behind it is laudable. It’s a phone where most parts are screwed instead of glued, and components like the camera, processor, and battery can be easily removed and replaced to achieve greater sustainability.

As much as I would love to love this product, you probably already understand why I’m reluctant to. The accessibility of the components means making compromises. The phone might be less sturdy, or not as waterproof, or more expensive. There can be an advantage to having the Swiss knife of mobile phones, but it comes at a price.

And while you might know this already, I think this issue isn’t limited to products alone.

It’s great that a browser can have many tabs open and that we humans can work on several projects at once. However, a software tool that promises to solve all your problems probably… doesn’t. The same as an employee who’s ‘good at everything’ probably isn’t.

So never forget there’s a cost to transmission, a penalty for taking a broad approach, and meaning can be lost in translation.

How to say ‘no’ to your customers and still provide great service

I’ve worked in customer-facing roles in the retail and hospitality industries, and now I’m a freelance writer. In all three roles, I quickly learned that there are plenty of times when the customer is most decidedly not always right.

But even when they’re dead wrong, what do you do?

As a service-based business owner, I pride myself on delivering exceptional customer service, and I’ve learned how to create a strong client experience while also standing my ground. Here are my tips for how to walk that fine line as a service provider.

1. Don’t fall for an ambush

In order to stand your ground, you need to be prepared. Being caught off guard is a one-way ticket to being taken advantage of.

Here’s an example. I had a contract to write some website copy. I followed all of the instructions (including vague and frankly strange ones like “write sexy like James Bond”). I got great feedback from the client, and the project was complete.

Then the client “wanted to talk.” They insisted on a phone call at a ridiculous hour and refused to talk by email. I woke up at 6 a for the call, and they promptly informed me they’d been working with two copywriters at once — and they liked the other person’s copy more. Ok, no problem. Except they didn’t want to pay me what we’d agreed upon, even though I’d completed the work exactly as specified.

It was an ambush. I knew it then, but I was too flustered to do much about it. They demanded an answer right away, and because I was still building my client base, I wanted to be agreeable. I said yes, I would take a discounted rate, and walked away with only half of the amount I had rightfully earned.

It was a mistake: the correct and only answer was no — to the call initially and to the request of a discounted rate. We had a contract, I delivered, and I even got positive feedback. I hadn’t been participating in some competition; it was a job, and I did it.

Since then, I’ve had a few (now ex-) clients try to rattle me with last-minute calls or Zoom meetings to try to increase the scope of work without payment. I stick to email, and it prevents an ambush.

If you’re ever caught off guard, try saying something like: “Let me consider it, and I’ll get back to you through email later today.” Maybe you’ll decide they’re being reasonable — and that’s fine — but it puts you back in control of the decision.

2. Communicate standard policies upfront

If you communicate your policies right off the bat, you’ll have something really clear to point to when standing your ground, which makes it a lot less fuzzy.

For example, one of my standard policies is that my prices include one round of revisions that allows for up to 15% changes in the text. I made this policy because I had clients who would approve outlines and then ask for multiple rounds of edits that completely revamped the entire post — they didn’t know what they wanted, and even if they were well-intentioned, it ended up losing me money.

Sometimes clients still ask for multiple rounds of edits. But I stick to my policies and let them know we can either use the existing edit or I can charge more for additional revisions.

For your most important policies, I’d suggest reminding clients a couple of times: once when they first sign on and then again when you start your first “project” with them (for me, that’s when I submit my first draft).

3. Put everything in writing

I essentially run my entire business through email. There are a few reasons for that:

It’s convenient

It prevents those ambushes I mentioned earlier

Most significantly, it allows me to keep a record of all communications

There’s no confusion when I can literally point to what I or the client said in an email two months earlier. Even after client onboarding calls, I send a written summary of everything we discussed and ask the client to confirm that the details are correct.

Of course, if you’re in a situation where you need to show your clients that you’re right, do it delicately. Here’s my go-to response:

No one can argue with that, so you’re able to protect yourself while ensuring the client that you’re not trying to pull the wool over their eyes.

4. Know your boundaries in advance

Boundaries are hard: in life, at an office job, and especially when you’re running a business. When I started my business, I had no boundaries. I felt like I couldn’t say no to anything — it cost me money and was terrible for my mental health.

When I realized what was happening, I realized I needed to officially set some boundaries. They didn’t have to be part of my standard client-facing policies, but I needed to write them down for myself and stick to them.

I started delineating what I would always say yes to (e.g., NDAs) and what I would always say no to (e.g., non-competes). This means:

I don’t get decision fatigue every time I’m faced with a client request that I’m not sure is fair — I just follow my own boundaries

I have a clear understanding for myself of what’s good for me and my business, and I don’t accidentally lose sight of that for edge cases

I had a client, for example, who emailed me because a post with my byline mentioned one of their competitors. That mention had been added by my editor — I had no idea what the client was even talking about.

They asked me to remove the mention. I said I couldn’t: my editor put it there, and I don’t own the content. They then asked me to sign a non-compete that would be “at our discretion at any point” for direct and indirect competitors. This was a client who hired me for 3% of my annual income, and they wanted almost full control over my client relationships.

I’d really liked working with this client, but I said no. It meant I lost the client. And it hit: it was right at the beginning of the pandemic. But I had a clear boundary I’d established for myself long ago — no non-competes — so I confidently knew that I was making the right choice.

It’s worth reviewing your boundaries (and your policies) every so often to be sure they’re still relevant and meaningful for the current stage of your business, but don’t do it so often that they’re no longer helping you stand your ground.

5. Remember that clients who walk aren’t a good fit

Not all clients will be a fit for your business — and if they aren’t, it will be almost impossible to deliver the experience they’re looking for.

If you have a potential client that’s trying to get you to do something that doesn’t align with your skills, your contract, your availability, or your agreed-upon deliverables after you’ve said no, walk away.

I had a client who requested more content than I had time for one month. I told them I could write two blog posts for them, but I wouldn’t be able to do the website copy they requested. They continued even after I’d said no, and even accused me of “letting greed block my blessings.” I tried to give them the benefit of the doubt and explained how the site copy would take four times as long as the blog posts, but even then, they said I should cut my Christmas break short to make time.

That was the end of that client relationship — and that’s ok. Losing a client is never easy, but if it’s not a good fit, you’re better off for it.

More than 90% of all of the clients I’ve worked with as a freelance writer have been exceptional, and all of my long-retaining clients are a dream to work with. But there will always be clients with unreasonable expectations. Others will blatantly try to take advantage of you. And some will simply misremember or misunderstand something to the point where you risk a potential issue.

Knowing how to stand your ground — both proactively and after the fact — allows you to keep your business running smoothly while offering great customer service at the same time.

This article by Ana Gotter was originally published on the Zapier blog and is republished here with permission. You can read the original article here .

Don’t let ‘shrinkflation’ affect your software development

You might not have noticed, but the products you’re buying at the grocery store are getting smaller. That’s right: They’re shrinking. In the wake of the COVID-19 pandemic, which sent raw materials prices soaring, many companies are trying to find ways to cut costs.

So if that box of Cookie Crisp (part of a balanced breakfast, they say) feels a little light, you’re not imagining things; General Mills has decreased its family size boxes from 19.3 ounces to 18.1 ounces.

Economist Pippa Malmgren coined the term “ shrinkflation ” to describe instances where companies reduce the size of products while retaining prices. However, prices aren’t staying the same. In May 2021, global food prices were the highest they’ve been since 2011.

While the Federal Reserve insists the current period of high inflation is temporary, the ripples are being felt throughout every sector of the economy, including software development .

If you think “shrinking” the amount of effort you put into projects is the best way to keep prices low, you’ll end up harming your company’s integrity and failing to meet client expectations. That’s not the right way to deal with inflation in the software development industry.

The state of professional services

For some C-suite decision-makers, there are few options but to increase the charge for professional services. Firms are grappling with pressure to decrease professional services costs, increased competition and commoditization, and the rising cost of talent. Some of these pressures have been mounting for years, while others directly result from the recent economic downturn.

Thankfully for those of us in the software development space, there were fewer obstacles during the pandemic due to the demand for digital innovation. The surge in remote work made software vital to businesses’ survival.

According to an IBM survey, the pandemic accelerated digital transformation at 59% of organizations. Additionally, the Worldwide Developer Population and Demographic Report indicates that the number of developers increased by 2.5% in 2020 (albeit slightly less than the projected growth of 4%).

The amount of money being poured into digital transformation could balloon to more than $2 trillion by 2022. According to Twilio, 79% of companies claim that COVID-19 increased their budget for the effort. Maybe this will make some of the laggards get off the proverbial pot.

Organizations still have plenty of work to do, which bodes well for your business despite software industry competition. Your best-in-class digital services are the key to meeting executives’ digital innovation goals.

Cost, which has historically been the main factor impacting business decisions regarding technology investments, should theoretically become a smaller barrier.

However, something about this shift feels different. I’ve been in software development for 15 years. My advice? Make sure you can compete in the modern market.

How to best compete in this market

Researcher Aaron O’Neill estimates 2021’s global inflation rate to be 3.5% , which is significantly higher than 2016’s 2.7%. In the US, professional services experienced an average annual inflation rate of 4.86% between 1961 and 2021.

Considering other professional services are experiencing increased demand — CNBC reports that home renovations will cost more and take longer — it’s safe to assume the inflation rate will rise in the software development space as more businesses invest in digital innovation.

While shrinkflation might work in business-to-consumer industries like food and beverage, it’s not a tactic you should use to combat inflation.

Clients need software products that thoroughly address their pain points and improve existing workflows. If you’re producing something that’s ineffective, you’ll see fewer repeat customers and likely experience a decrease in revenue. No one wants that.

Assuming this pricing spike is inevitable, how should you decrease how much you charge for professional services moving forward? Here are my three tips:

1. Embrace new tech that will attract top talent

Top talent can be 400% more productive , according to a study in Personnel Psychology. And if your workers are more productive, you’ll see increased profits , according to Gallup.

But how do you attract high performers? By focusing on emerging technologies . These technologies can make existing processes more efficient, but they can also act as a draw for talent.

Software developers are looking for companies that are the “next big thing.” Artificial intelligence, blockchain, and more will inevitably shape the world in countless ways. Top talent wants to drive that change.

Increasing investment in and commitment to AI is now a necessity. What looks like magic to your competitors in five years is actually the result of today’s good planning. And AI is not a set of niche technologies — it is most effectively deployed horizontally across an organization.

According to Boston Consulting Group, digital laggards tend to view AI as a standalone solution, which limits its effectiveness in their organizations.

2. Invest in your current employees to keep them around

Workplace culture might be hard to define or quantify, but plenty of studies show that close-knit teams and inclusive office environments are associated with higher levels of employee engagement and productivity. And as I mentioned before, productivity improves profitability.

This isn’t to say you should underpay or overwork your employees. That mistake can result in poor performance and turnover, which is counterproductive to your goal.

Rather, you should make sure your firm values workers’ contributions, rewards them, and continually presents them with new opportunities for personal and professional growth. Nothing beats working for a company that genuinely supports its employees.

3. Put in the work upfront

According to George Cressman, president of World Class Pricing, “Delivering professional services requires great skill in diagnosing customer needs and understanding the relationship between very diverse components of a customer’s business. It requires skill in tailoring a solution to precisely meet a customer’s needs, and communicating that effectively.”

In short, your clients will be far more excited to work with you if you do as much of the discovery work for them as you can. The corresponding savings in software development costs can mitigate the impact of the current inflationary trend.

When you can hand your new partner well-defined personas, highly relevant user journeys, accurate requirements, and in-depth market research, everything moves faster. This upfront heavy lifting won’t eliminate the need to recalibrate once projects are underway, but it can reduce the number of steps from start to finish.

Even though it seems counterproductive, software development consulting rates can keep the overall cost of the project down. Moreover, with a detailed plan in hand before development begins, clients can be assured that you’re building the right thing the right way.

To be frank, software development is expensive . It was expensive two years ago, and it will be expensive two years from now.

Resisting the urge to raise your prices will help you stand out among your competitors. If your work is clever, comprehensive, and cost-effective, your business will reap the benefits of what could be a prohibitive trend for potential clients.