We’ve all had that one client that we’d love to fire. The one that makes us so crazy with their demands and neediness…offering very little in ROI once you break down all you’ve done for them versus what you’ve actually gained.
Often, the problem is that this client is so important to you that you think you have to do everything they request in order to keep them happy. You need them more than they need you. Guess again.
If you don’t know David Ogilvy, look him up. I’ll wait. To save you some time, I’ll share that he was to advertising back in the Mad Men days what Seth Godin is to marketing now. He was “it”. He was the shining example of an advertising genius. Simply, he knew his stuff.
His agency was very particular about with whom they would work. Legend has it that they would turn away dozens of clients a year, no matter what the potential was. One of their rules was “Never work for a client so big that you can’t afford to lose them”.
Over the years, I’ve seen many examples of this up close and personal. I had one customer in particular whose entire operation centered around servicing one very large international client. As technology continued to evolve, his client didn’t adapt fast enough (full disclosure: they hardly made any effort until it was well too late) and he ended up with a warehouse full of branded merchandise for this company as they went Chapter 11.
Similarly (and why I didn’t open with this is anyone’s guess), I worked for a premium incentive company that stocked everything from pen and pencil sets up to large appliances. To give you a clearer picture, this was back in the days when you would open a bank account and would get a free gift. You better believe it was a large account that would earn that Amana refrigerator.
And then…regulations changed and banks could no longer offer incentives (why do you think they keep the pens locked to the counters? In my next column…), and my employers ended up going Chapter 11 and then Chapter 7 as they had to liquidate all of that merchandise in order to pay vendors. Employees like myself weren’t considered vendors, so you can guess how I made out in the end.
In the end. That’s right.
These are just two examples of being too reliant on one customer (or industry). There’s a lot to be said for diversification.
If you’re just starting out, let this serve as a warning. Insert some cliché here about eggs and baskets.
You can’t afford to become beholden to that one customer. It will reach a point where they are no longer your client as much as they simply own you. Their expectations may not seem too bad at first but when you find yourself losing sleep over their demands, then it’s gone too far.
What about the client who thinks the rules don’t apply to them? You know the one: “Sure…your terms are N30, but I’m taking a discount off that. Oh…and paying in 45 – 60 days. You’ll make it all up with the future business I have planned for you”. Yeah…no. What this means is that they don’t truly value you.
Remember “business ethics”? I don't think enough people do. I remember when I was a struggling promotional products distributor and, via a connection, I had the opportunity to meet with the person responsible for buying those products for an organization I could never support. I thanked our mutual connection and politely declined.
A similar incident happened to one of my voice-over associates. She was asked to narrate a commercial for one of the most notorious weed killers. She declined, feeling that, while her voice is for hire, her integrity is not for sale.
All of these points should help you realize that, while the immediate gratification of a new order can seem wonderful, the long term results may make you want to simply fire that client. Those accounts are actually preventing you from growing your business. Down the road, should they ask you to quote on another opportunity, you can respectfully decline (Key word: "Respectfully". They still may want to recommend you to their contacts!).
Time to start looking for new clients!
Mike Schenker, MAS, is “all that” at Mike Schenker, Consulting, where he assists businesses entering the promotional products industry, mentors professionals, and offers association management. He is a promotional industry veteran and member of the Specialty Advertising Association of Greater New York (SAAGNY) Hall of Fame. He can be reached at mike@mikeschenker.com.