How to fire a customer

[Taramere]

I would be happy to refer them to other companies that might meet their expectation. Then rattle off some of my favorite competitors....this becomes a win / win.

 

Ultimately people are going to have to be dealing with these nightmare clients (who bring them headaches, stress etc), and if those people discover that you personally recommended them (after dealing with the client and discovering how bad they are to deal with) I think that could be problematic. If I discovered a competitor had referred their unwanted (and awful) client to me I would regard that as hostile and unprofessional behaviour. It just gets people's backs up. A competitor is not an enemy. Sometimes a competitor is somebody you might want to work in a collaborative way with at a later date.

 

I would never refer a non paying or bullying client to somebody else. I might refer a very demanding client to somebody who was more specialised and experienced in that particular area of work. A challenging client might just be somebody who is getting frustrated because you're not strong in that area. If I think I'm just not good enough at a particular type of work to meet a client's needs, I'll refer it on to somebody else who's stronger in that area.

 

But in that situation, it's not the client that is the problem - it's my lack of strength and experience in that particular area of work. Or they might want somebody with a more aggressive approach, and I might think of somebody who I think they'd connect better with. By the same token, competitors might refer work on...and you want those referrals to be good ones, not migraine inducing clients who will induce migraines no matter how well and how hard you work for them.

[Tayla]

Good view Point Taramere.

 

Our business often welcomes competition ...it keeps us on our toes and we also learn from others in business. We have what is called a Network Group in our Business community where various business's associate and confer with one another....Its healthy to some extent to Have each others back and not use a knife so to speak.

 

Crickets could be heard on the Phone when we followed up with our Proposal to this client. The Boss chose to take the high road, charge them for the tasks at a price they will not be able to come up with. Payment upfront, Contract being fine tuned and a Mediator clause to deter legal cost. The Project will take ten days...So its not a long term or ongoing . Its rather cut and dry from a business side...Its the client that will be less able to wiggle out of the details.

 

I sincerely did learn a lot from the responses here., ..so thanks folks!!

[firemanq]

We do the same, raise our prices till they go elsewhere and if they don't.. oh well.. nothing like making a killing on someone you would rather not do business with.

 

I remember the first customer I fired. I met with him and I was terrified. I knew all the buzz words and phrases. The customer is right, the customer needs to be happy with your work and more trite sayings. This was a restaurant account, cafes are in a very competitive market and have low markups. This guy was very cheap, his word was of little value and he was never satisfied with the job. at the meeting, I told him he needed to make other arrangements, that he did not like my work and he thought my prices were too high. He looked at me, and told me he was very pleased with my work, and thought my prices were competitive. I never thought he would come back with a statement like that! I then told him I was at a point were I needed to increase my prices as my costs had gone up and the service would now cost him more. He agreed to the cost increase and was a customer until he sold the restaurant.

 

 

I had a customer that owed mw $14,000.00 for past work. I refused to do more work until the past amount was paid. The Fire Marshal found out that there were serious problems with the life and safety systems. I did not contact the FM, but he did contact me. I told him the motel was behind on payments and there would be no work until I was paid. I then sent him a list of problems. They were put on Fire Watch until the problems were fixed. The FM inspected the motel weekly, paying attention to the Fire Watch Log. The local fire chief also inspected the motel 2 or 3 times a week. Then the motel chain found out what was going on. These folks were going to loose the franchise if the repairs were not done. I got a check for the past services and was asked to make an estimate of other needed repairs. The FM and I inspected the motel and I made an estimate of repairs plus problems with the original installation. Anyone know what the 20% a** H*le tax is? That is when it takes an additional 20% for you to get motivated enough to do the job. I did not feel 20 % was justified, but 30% did motivate me, with a 50% down payment. When the check cleared, we showed up and did the work. One of the partners now has another motel which needs work. We have done 1/2 the work, with 50% down. I will stop in today for the balance. I will get signed approval for more work and another 50% down check. The work will be scheduled.

 

 

Sometimes we do not value our work enough.

[Tayla]

firemang, interesting way to work thru client concerns. Sometimes standing ground is purdent.

 

Our business today got a response from the client. They are still at the review stage and questioned our fee change. I am now regretting the proposal even being entertained... they are placing us in a corner that whatever we respond with will give cause to litigation. Something so simple as quote is heading down a path we wish not to go. I need to review some previous posters suggestions to keep us out of hot water.

[dispatch3d]

Just go with the really well worded no that was earlier in this thread that you liked so much. We are too busy at the moment and unable to take on further clients. It sounds like this company is just out to sue you, and may threaten to sue unless you pay a certain amount. I would just make their lawsuit as frivolous as possible by not giving them any material - including refusing their business due to these problems.

 

I live in Canada and any lawsuit is going to cost you at least 10k (if you use a lawyer), even if its entirely frivolous. No way is the risk worth the reward here.