You're Fired!
Now who fires clients in a down economy? Does every penny really count? But the true question is how much is your time worth? My business partner and I have this debate on a weekly basis, but the true fact of the matter is your time is EXTREMELY valuable!
So if a client starts eating away at your time (non-billable hours, to be specific) where do you draw the line between maintaining the relationship and ensuring above and beyond customer service or simply letting the client go. Because at the end of the day, they are costing you too much money and the total cost of their job doesn't add up to the amount of extra hours put in.
The Solution to this conundrum according to one of my marketing sources -Part ways from the overbearing client and shift focus to your best clients. By choosing to focus your company's efforts on your best customers, you can improve productivity, enhance service and find reward in additional business.
According to Business Author, Marketing Profs contributor and co-founder of the Value Added Institute- Scott McKain, there are more reasons to consider firing a "bad" customer. Even in a downturn—when many of us count each client as a blessing—some of them might actually be hurting your business.
So, whom do you cut? you may consider severing ties with:
The Bottom & Unprofitable
The Unprofitable are customers who close deals but take too much staff time, ask for unreasonable concessions and demand expensive expedited delivery. "Remember, the goal for your business isn't volume, it's profit," he notes.
The Obsolete.
"If you have only limited resources, don't spend inordinate time and money on customers from declining industries," he suggests.
Sometimes it's best to just let them go. It might sound counter intuitive, but firing a client or two could make your business more recession-resistant.
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