Here’s why overdelivering hurts your business. In a math edition.
Paul is about to work on a project for Marie.
In Paul’s head, underpromising and overdelivering will make a sweet deal in Marie’s eyes to:
- Close the sale
- Build a good reputation
- The opportunity to raise prices next time. [Because great work, right?]
It’s the perfect formula… to unprofitability.
→ The promise in Paul’s head: X
BUT
→ The promise in Paul’s mouth: Y
→ Paul tells Marie he’ll deliver Y, which is “10” less of what he expects to deliver (leveraging her ignorance/lack of expertise in the field). He underpromises.
Y = X – 10
→ Marie’s expectations (the actual promise in Marie’s eyes): Y
→ Paul delivers what he projected at the beginning: Y+10 = X
He underpromised and overdelivered.
Marie is blown away.
But now…
Marie’s normal delivery expectation for further work: X
Marie’s normal price expectation for further work: Y = X – 10
She will expect to pay X-10 and will expect deliveries for X.
While Paul thinks he’s nailing it, he’s just winning the race to zero.
The way out?
Promise. Deliver. Keep your word. Delight.