You’re Fired

Business Owner to Customer - You’re Fired!

Former Customer: Does this mean I’m not invited to your holiday parties anymore? 

I’ll never forget my call to a customer to discuss an order that was having an issue, explaining the challenge and the solution I felt would solve it. Before I could finish, she started screaming at me…literally screaming! She didn’t stop for a full five minutes, basically telling me had I never been born, she wouldn’t have to be dealing with me. Despite getting the issue solved and the order in her hands on time, I never spoke with her again, which was a blessing for both of us.  

We’ve all had them, clients who make you absolutely crazy with their demands. Your price is too high, your service is too slow, why can’t they get this product in chartreuse, they need their order yesterday, but can’t order until tomorrow. And when they call, it’s never to say thank you, but instead to bitch, moan and groan about how horrible you are. Ring a bell? 

While it’s natural to want to seize every opportunity that comes our way, there are times when saying no to a prospect, or even a current customer, is the best thing for your business and mental health. If a customer is costing you economically, causing you mental anguish, or has values that violate your company’s policies, it might be time to fire them. 

Here are five key reasons it’s time to tell a customer they’re fired, in a polite way, of course. 

1. Unreasonable expectations - Do you have a customer who expects you to be at their beck and call, no matter the time of day or night, always calls you at the last minute with unreasonable requests, demands excessive discounts, or is regularly abusive to your staff? There are many reasons a customer might be difficult and asking open-ended questions and listening could help you understand why. Maybe they had a bad experience with another vendor or their boss is pressuring them to do the impossible. However, if this happens on a regular basis, it might be time to tell them goodbye.

2. Toxicity - Some customers never have a good thing to say about anything. They call to ask the impossible and when told no, they become abusive to you or your staff. The toxicity from these people can spread throughout your organization, bogging down employees and creating a sense of negativity in anyone who deals with them. Not only does this hurt productivity, but it can affect employees’ well-being and health. Motivation falls, engagement with other clients is disrupted and eventually, your bottom line suffers. As a hustler and leader, it’s your responsibility to protect your employees and your bottom line. Sometimes this means parting ways with customers who don’t up your game or have respect for your valued employees. Could it be time to say, see ya later alligator?

3. Low profit margins - We’ve all had customers who always demand a lower price. They’re so used to buying from online stores where price is king, they don’t understand the value in working with hustlers who are experts in their field. Just because a customer is filling your pipeline doesn’t mean they are adding to your bottom line. It’s your job to make them aware of the value you add through additional services such as distribution and fulfillment, graphic design, and amazing customer service. Sometimes, these additional services can take a customer from being unprofitable to profitable, but if not, it might be time to say buh- bye. 

4. Consistently late payments - You know the ones I’m talking about. You bust your butt to get everything just right and delivered on-time to meet their expectations and when you invoice them…radio silence. A study by QuickBooks revealed 73% of small businesses are impacted by late payments. It’s imperative when starting to work with new clients you outline your payment policies, any early payment discounts you offer, and late payment penalties. Remember, if you provided the products and services agreed upon in a timely manner, they owe you the money agreed upon. Never feel bad about asking for the money you’re owed; however, understand even good clients sometimes pay late. It’s the chronic late-payers you need to concentrate on and determine whether the business they give you is worth the time, energy, and frustration they bring you. If not, perhaps you should say sayonara.

5. Values or business practices that conflict with yours - At some point we all deal with customers who define the word toxic. They are verbally abusive, pay late, are never satisfied, lack compassion, are involved in illegal activites, or simply take up too much time with minor issues and concerns you’ve already dealt with. Customers are the lifeblood of any business, but they need to be the right customers who help your business grow as you help them grow theirs. You have a limited number of hours each day to do business.  Focusing your efforts on those clients who are profitable, respectful, have growth potential, and whose values align with yours, and with whom you enjoy working with ensures a happier workplace, motivated employees, and a stronger bottom line. If this isn’t the case, consider saying adios to them. 

Firing customers is a drastic step and doesn’t come without risks. There’s always a chance they will post negative reviews, jump on social media to trash you, or tell others in their industry how horrible you are to work with. That’s why it’s imperative to communicate honestly and sincerely about why you believe it’s best to part ways. Be brief, state the facts, be specific about your reasoning, and stay calm. 

The best way to avoid the need to fire customers is to be selective in the onboarding process. Take the time to discuss their expectations as well as yours, explain the workflow, who they will be dealing with, and your payment terms. Your instincts are the best indicator of who may be a good client for your business, so trust your gut when interviewing potential clients.

Saying goodbye to a customer, even a bad apple, is uncomfortable, but can be done with tact. Don’t use email to fire a customer, pick up the phone and call or arrange a virtual meeting. Maintain professionalism, don’t get into a blame game, and be empathetic. If it feels comfortable, refer them to other professionals or businesses you know who might be a better fit. Once you’ve communicated your decision, resist the urge to engage in any further communication with them and focus instead on moving forward and finding new opportunities. 

It can be a tough call, but sometimes what’s best for your business and mental health is to tell a customer…“You’re Fired”!