Fire That Customer

By Mark Hunter

We all have at least one customer we don’t like, the customer that, after we do everything they ask, ends up costing us money. We wind up with these unprofitable customers not because of the rates we charge, but because of the intensity of their demands and requests. No matter how much service you provide, they keep asking for more.

The problem is that the more you do for them, the more they expect. These ongoing demands quickly erode profitability. Plus, it usually happens so slowly that you don’t realize how unprofitable they’ve become. This “slow drain” means that it usually is out of control before anyone realizes how bad the situation is.

To be able to determine which customers need to be “fired,” you must become more discerning about customers who place too many demands on you and your staff. Remember that if a customer becomes high maintenance, they will likely remain high maintenance.

Once you spot a customer making multiple service requests, begin detailing the costs involved, which will help you decide how to deal with them. Too many times, companies roll over and play dead, allowing the customer to continue to make demands. The only thing that happens is a loss of profit. As a result, you become disenchanted with the amount of support devoted to an unprofitable customer who is never happy.

If, on the other hand, you realize something needs to be done to rectify the situation, there are two options:

1) Confront the customer. Your objective is to decrease their requests.

2) Increase their rates. This will offset the additional costs you incur serving them.

Personally, I prefer option two, because increasing their rates either restores the profit, or ends the relationship. Either way, you win. This is a much better option than confronting them. Confrontation tends to create a level of tension that winds up as long-term friction. Ultimately, no one is happy.

If you raise your prices for your difficult customers, you will gain the profit you need, or the customer will walk away. The beautiful part of using this approach to “fire” your customer is that they leave without you ever having to tell them you are firing them.

Profit is good. Don’t sacrifice it in the name of “good customer service.” The best service is that which satisfies your customer and allows you to make money.

Read other articles and learn more about Mark Hunter, “The Sales Hunter,” at www.articleweekly.com/author/mark-hunter.htm.

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