It’s a simple fact…there are some customers that you must fire if you want to remain profitable.
To be fair – some of these customers are sold products and services that are not beneficial for them. It can be easy to get carried away with the thrill of making a sale, but to avoid these situations, it’s important to only sell your services to customers who can truly benefit from using them.
Other problem customers could have been the right type of clients at the beginning of the relationship, but due to personality changes and/or changes in corporate policies, are no longer as profitable as they used to be.
Stop working with these two client types:
1) The “Late Payment” Client
The one client type that you shouldn’t think twice about firing is the client who does not pay, or consistently makes you wait an extended of period of time before paying. If your company has to spend months waiting for payments from a client or your account receivables department has to make multiple calls before they get an answer, they simply aren’t worth keeping as customers.
Let’s face it – we’re in business to make profits. If a customer is no longer profitable, it makes no sense to continue your working relationship with them. ← Click To Tweet
Ideally, you should assess how profitable a client is (and can become) during the qualification stage. But, if you find yourself in a situation where you’re working with an unprofitable client and you don’t foresee this pattern changing, get rid of them! Don’t even think twice!
2) The Time Drainer
This is the type of client that needs constant attention (even though they are a smaller account) and demands (instead of requests) regular changes or extra work to be completed. There is a certain threshold of “extra work” that most people are willing to do until things get out of control. If you are working with a client that is constantly on the wrong side of that threshold, get rid of them!
The Time Drainer takes up so much of your time that your other, more profitable clients aren’t getting the attention they deserve and are paying for.
Dedicate your time to working with the types of clients that you want to work with. The clients with great personalities and excellent growth potential are ideal candidates to spend more time with. These are the types of clients that turn into long term relationships and long term profits for yourself and for your business.
Are you looking for more strategies to create success with your clients? Get your copy of my new book Nonstop Sales Boom.