NFIB

Firing a Client
02/ 12/ 2003

by Vicki Gerson

In today’s economic climate, it’s difficult to turn down business. Yet some customers can put such a strain on you and your employees that their business is just not worth it. Here are a few situations in which you may want to consider firing the customer.

The customer takes repeated advantage of you.

You know the type. They ask you to special order an item for them, and they never pick it up. They expect you to drop everything to complete a project for them, but take their time paying your invoices.

Potential customers can exhibit this behavior as well. Someone calls your travel agency and says she’s interested in booking a luxury cruise to the Bahamas. You spend numerous hours checking different cruise lines, seeing what ports are included and putting an itinerary together. You then fax it to your customer. You call, but the customer doesn't return your phone call. You even send an email, but there is still no answer.

After waiting a week, you try again. This time you reach your customer who says, "I've been meaning to call you. It turns out one of the couples we will be traveling with found this great travel agent in Florida who got us this fantastic deal on a cruise."

When a customer seems content to let you waste your time after they’ve made other arrangements, and doesn’t even show you the common courtesy of returning your phone calls or email, you should think twice before making a time commitment if this person ever calls again.

The customer takes up more time than their business is worth.

A client for you're completing a small project for phones you three times a day and expects you to stop everything and talk to him. When you are not in your office, this client gets upset and hassles your staff, asking where you are so he can reach you immediately. He’s complained about all of the work you’ve completed so far. Since your time is money, you are clearly not being compensated accordingly for working with this difficult client, and future projects for him will not be worth it.

If you don't want to fire a difficult client because he is 20 percent of your business, factor in extra fees or raise your pricing in order to provide this client with the extra attention he demands.

The customer lacks trust in you.

Perhaps a client questions every item on the invoice and demands details. Or she stands over your shoulder the whole time you are completing her order, convinced that you’ll make a mistake if she doesn’t guide you every step of the way. Working under these conditions can be demeaning and demoralizing for you and your staff, and sometimes it just isn’t worth what you are paid to put up with such hassles.

While you have to pay attention to your bottom line, working with clients who cause you extreme mental and physical stress may not be worth their monetary contributions. In those cases, firing a client and opening up time for new customers who will treat you with the respect you deserve may be your wisest decision.

Small Business Sound Off
Does this story hit home?  Share your story with us