Saturday, October 14, 2006

Not All Customers Are Good Ones

Customers should be valued and catered to. They are the lifeblood of any business. But many businesses have a customer or two that simply are more trouble than they are worth. These are the customers that beat you up constantly for lower prices, they demand more than is reasonable and they generally make you and your employees' lives miserable. In many cases, these customers are costing the company more than they are bringing it. A judgment call needs to be made in terms of whether a customer of this nature is important enough to the overall goals of the business to continue to have a relationship with. In some cases, it is justifiable for the business to terminate its relationship with a customer. While not common or recommended for most customers, the few that are truly too much trouble and too costly to deal with might need to be asked to buy elsewhere in a very tactful and professional manner. But think through any such decision completely and carefully before making it. Some relatively new customers that are difficult and not profitable grow into very profitable ones. And in some cases the customer simply needs to have someone work closer with them to develop a better understanding of pricing and service issues.

Good Luck & Good Selling!
Russ

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