Thursday, July 10, 2008

Not Every Customer is Worth Having

We all need to remember that not every prospect is good for us to do business with. I have found, where there is smoke there is always fire. It seems like a beat-down on pricing, weekend visits, constant problems with products or services, and very slow or non-payments usually always go together.

The relationship with these customers almost always ends in disaster. They go out of business, never pay you (and then move onto another vendor), or end the relationship the one time you don’t give them the answer they want to hear.

If an account is always a problem, cutting them loose will usually boost your sales numbers in the long run. This includes big accounts that might give you a significant volume of business. Think about this, is the business you receive from a customer worth the cost of downsizing your self-worth and positive attitude. These accounts also take so much time away from new business development.

Cut these cancers loose and move on. You will make more money and sleep better at night in the end. You owe it to yourself to do business with customers that respect your expertise, hard work, and recommendations.

3 comments:

dani said...

Hi, Will,
What you are doing here is a great thing!!! I hope your efforts will be utilized.
You are so right about pruning businesses that drag you. As a safety engineering contractor, there have been several businesses that I have gladly not renewed as a customer after their contracts expired for exactly the reasons you have mentioned.
~Dani D. Berrong

From the Author: Will Fultz said...

Dani,

Thanks for your comment, I think a lot of people in business feel the same way but never take action to resolve the issues. Hope you come back.

Thanks again,

-Will Fultz

Sales management 2.0 said...

Will,

I think a lot of sales people are afraid to cut the cancer loose because they are not confident they can replace the business. Possibly a great future post for you! :)

-Brad