When It's Time To Fire A Customer

What?  Isn't that backwards?  Isn't it the customer that usually does the firing?

Usually, as business people, we work so hard to find and cultivate new clients that we hang onto those relationships with all of our might.  Sometimes though, it's important to recognize that not all client relationships turn out to be good for our business and sometimes they can grow downright toxic.

There is a philosophy in business circles these days that subscribes to the theory that every business should "fire" the bottom 10% of their client base each year. The theory is that you should cull your weakest clients and replace them with stronger, more beneficial relationships. I'm not sure I totally agree with that philosophy completely but I do know that there are some occasions when it's better to rid yourself of burdensome clients.

We just went through a situation where it was just better for us to tell a client to take his business elsewhere.  Over 25 years we've fired maybe 5 customers.  Sometimes it is really easy.  Sometimes it's not.  This one was a bit painful but in the end was best for our business.

What are the signs that you should fire a client?

• When you cringe when you find out that a particular client is waiting on-hold.
• When your staff starts drawing straws to determine who has to visit that client.
• The only time they pay their bill is when they have another emergency they want solved.
• When they consistently blame their mistakes on your staff.
• When they consistently ignore your advice and still blame you when what you told them what would go wrong does.

It's never easy to fire a client, but sometimes it works out better to just say "Life's too short and you're just not worth the grief."  Maybe for some you say it under your breath but sometimes it needs to be said out loud.