Addition by Subtraction

When Is the Best Time to Break Up With Crappy Clients?

“Breaking up is hard to do.”

—?Neil Sedaka

Sometimes it’s better to cut your losses than hold on to someone who is going to waste your time. And no, this isn’t dating advice. Instead, I have some insight on crappy clients — how to handle them. Although, now that I think about it, maybe it’s more like a?Kenny Rogers song than that old Neil Sedaka tune.

Are there times when it’s ok to dump your clients?

The short answer: YES!

Let’s tell a story first.

Last week I fired a long standing “client”. Note; There is a difference between a client and a customer. This group was clearly the later. We did about $4k of extra work on one of their clients, charged them $1500 and they started bitching about the fee as they always did and this time, I told them to get all their crap out of our office.

Feeling a tad guilty about the emotional way I handled it, I went plant shopping as gardening generally makes me feel better. At my favorite nursery, I watched the owner waving his arms around while removing a customer’s wagon from his grasp. Essentially the customer, whom I have seen there often picking the owners brain for ideas and buying very little, demanded an additional discount of $10 on a $200 order that was already discounted 40%-50%. Connie, the owner said go and don’t ever waste my time again.

I felt better. I was not the only one dealing with unappreciative people. It doesn’t matter what you’re selling. There are always the entitled takers.

I have always been intrigued by the idea of firing customers. During turbulent times, the pressure has been on managers to make decisions that allow the organization to build up substantial cash reserves. And so the challenge has been on understanding the profitability of customers and the cash flow implications of doing business with them.

CRAPPY CLIENTS INCLUDE:

• Unrealistic buyers because they do have Google after all.
• Clients try to tell you their relationship with you is worth more than it is. No, you’re the expert
• Wishy washy, looky-loos, indecisive (time-wasters)
• Ask you to cut your fees
• Just plain old rude and difficult to work with

WHY DO YOU PUT UP WITH CRAPPY CLIENTS?

• You are insecure and desperate (don’t get defensive… keep reading)
• You don’t want your client to go somewhere else
• You believe that eventually, they’ll come around…right? WRONG.

CAN YOU AFFORD TO DUMP YOUR CRAPPY CLIENT?

• If the answer is no, then sadly, you have?to suck it up and deal with your crappy client… bummer.
• If the answer is yes, you can afford to dump them, then do it! I didn’t do this a long time ago because of finances, but now I simply have had enough of their crap. I should have had a candid conversation with our customer and helped them find a home for their clients. I didn’t because I was angry and also figured they had a myriad of choices ?available of cheap lower quality places to go. BTW, the one quality place they tried to go to didn’t take their stuff for the same reasons I didn’t want them anymore. As one of their former clients said, “I could deal with them double dipping but not triple dipping. In short, they’re pigs.” ?

So I and our entire staff had had enough. ?

In the 40+ years in business I’ve had to fire a few clients. I have never regretted doing so. When one door closes five will open. I’ve had to fire problem clients in order to invest more time and energy with the clients who were profitable and pleasant to work with. There have been three clients within the past 10 years who caused me to cringe each time I had to meet with them. This most recent customer was one was them. The constant whining about how much work THEY had to do with the client , how much less we had to do because they were involved, etc, etc.?They had to go.

In my field I work closely with my clients and mutual respect and trust is absolutely imperative. If I lose respect for my client or if they show a lack of respect for out time and knowledge or for me and my employees there is no way we can work together. NEXT!!

But even though customers are the reason you are in business, not all customers are worth retaining. A bad customer is one that will put the organization at risk financially. A really bad customer is one that not only puts the organization at risk financially but also jeopardizes the overall strategic position of the organization. Thus, it is important to understand both the financial and strategic implications of doing business with all customers.

As organizations are looking to implement marketing strategies for growth, good management and marketing practice should not be forgotten. Drucker's five famous questions need to be asked: What is our mission? Who is our customer? What does the customer value? What are our results? What is our plan? Linking together Drucker's ideas of customers and results, I'd add the question of how profitable each customer group before is going out and acquiring customers for the sake of growth itself.

When I announced this firing to our team of true professionals, I labeled it “Addition by Subtraction”. We have far fewer problems without them.? As for the pig, they need to find someone else to affix the lipstick.