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Small Business Marketing - The Clients You Do Not
Want
So you are now operating
your own service business and every client is precious. After
all, you had to work hard enough to get them.
You do not want to lose a
single one. "I'll over-service them like crazy," you think.
"Customer Service is my middle name. I'll do anything to retain
a client".
STOP! Think again. Some
clients are bad for your business and your business will not
survive if you have too many of them. You not only do not want
to retain them you should really cut them loose for the safety
of you business.
Who are these bad clients?
Let's consider first who
are good clients. What attributes do they have that will allow
you make a profit servicing them:
1 Need for your services.
2 Able to pay for your
services.
3 Willing to pay for your
services.
4 Value your services.
Need for service
When you are just starting
out you will sometimes pick up a client who doesn't feel he has
a need for your service and will come on board just to help you
out. No matter how much you knock yourself out trying to
convince him that he has done the right thing, nothing works and
you spend valuable time on work he doesn't value or appreciate.
Cut him loose.
Able to pay for
service
As a new consultant I found
many clients whose business had become so unprofitable that
there was no way in which they could pay me for the time needed
to get their business up and running again. Often I felt sorry
for them and took them on anyway. Big mistake. I spent hours and
hours of irrecoverable time. In the end it was not appreciated
and the hope of recovering some of the lost time was just a
dream. The client felt I was charging more for the current
service than he felt was fair. The solution is to accept only
clients who have the ability to pay.
Willing to pay for
the service
Many clients who appear to
be the perfect client will penny-pinch on your fees no matter
how wealthy they may be. You will have followed the correct
procedure. The fee for the service will have been agreed prior
to commencement of work and you and he will have agreed on a
payment schedule. You will have explained that work will cease
if payment is not made.
However, this client will
nickel and dime your fee to such a low figure that you tell him
that any further reduction must mean that a total service cannot
be given. Agreement will be made for one aspect of your service
to be cut. There can only be two options for you. The first will
be a service that is less than excellent or even unprofessional.
For the long-term health of your business you must never agree
to this. No matter how successful the outcome, your client will
not appreciate it and will certainly blame you if something goes
awry.
The second outcome will be
for you to cut from the program something that really needs to
be done. If the client is unwilling or not skillful enough to do
it, in order to save the project you will have to do it
yourself. Your client will not thank you, will not pay for the
extra work involved and will expect you do it for the same fee
every time.
Do yourself a favor do not
take this client on.
Value your service
If your client was the 'perfect client' when he
started but now continually wants you to justify each minute
spent on the work; has ceased to pay on time; continualy asks
for copies of invoices before he pays, then he no longer values
your service. In all cases you should immediately cease work
when there are outstanding fees. Something is wrong and your
client is telling you this in this negative way.
You must iron out any
problems that he has with you so that he becomes the perfect
client again or kiss him goodbye. Anything else will drain the
life out of you and your business.
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