3 ways to spot a bad client
by Fred on 19/11/07 at 1:37 pm
8 comments
Here are my top three red flags when meeting a new client. If anyone has any others to add to this list, comment away. I look forward to your feedback.
1. He starts by telling you how big his company will be
You meet the guy, and he seems pretty cool upfront. Cocky, self-assured, maybe even a little bit arrogant. Soon after you have shaken hands for the first time, the guy says ‘My company is going to be huge!’ followed shortly by ‘Because this is such a big project, we don’t have a lot of money to spend on your product.’ This is a sign you should start moonwalking towards the door.
2. He asks for a discount on your normal rates
Of course, this guy’s project is way more important than any of your other clients’ projects, so it is your duty to provide a generous discount. Not bothering to check what your actual prices are, he immediately starts on some wheeling and a little dealing. Cheers, thanks for playing… Taxi!
3. He accepts your quote, but then asks for better terms
Imagine someone goes into a restaurant, reads the menu, decides what he wants, orders and eats. When the bill comes, the guy starts bartering with the waiter. He says, ‘Can I pay in 60 days?’ or ‘Can I get a discount?’ Er, no… here are your rubber gloves, sir. Kitchen’s that way…
Believe me on this one: If your client starts moaning about your terms upfront, there’s a good chance of trouble ahoy.
In conclusion, Check out this article by Seth Godin; it’s sage advice from the bald one. Seth reckons that if someone says “I can’t afford it” what they often mean is “It’s not worth it”.
This is a mistake that I’ve often made, and still (after 8 years running small businesses now) am tempted to make. Aye caramba. If you hear those words… walk away man. Walk away.
Fred Roed is the marketing guy in the Ideate crew. He runs a web marketing company called World Wide Creative and loves writing about people out there doing marketing right. View more articles by Fred.
Darren
Nov 19th, 2007
Good advice Fred. Pity that you lose quite a bit of your time before no’s 1, 2 or 3 above become evident, and up until then, you just don’t know.
Goes along with what they say about ‘firing’ your customers. However, I like the approach of always being willing and able to help – if the price is right. But that doesn’t mean that he has to be happy with the right price. Where the customer is more difficult than he should be, that definitely results in extra costs for you, which means the price he gets quoted should be higher than for less argumentative customers. Bottom line, if he goes for it, great. If he doesn’t, great. A win-win.
Andrew
Nov 19th, 2007
“It’s incredibly urgent, and it has to be done this week, nay tomorrow…. but we can’t organise the deposit yet. Can you start with the job anyway?”
Liza
Nov 19th, 2007
It’s incredibly urgent I need it by this afternoon @ 5.
And then they collect 2 weeks later.
My son/niece/neighbour’s dentist’s daughter just started studying design so we’ll send you the yearbook artwork ready to print.
I would like this exact photo as a 1 storey
billboard.
Guesthouse owners: we took photos that you can use for the brochure ourselves
Please design a glossy brochure we’ll be doing the printing on our home printer.
My son would like one single T-shirt with this image on it.
I want a green logo.
Phone call 1: I changed my mind I want something in purple.
Phone call 2: Forget what I said earlier I just took a look at my office and we need to go with an orange logo.
Phone call 3: I had a thought about the colour of the logo again and I think we should stick with the green logo.
Phone call 4: Can I see it in a light lime
Phone calls 5-19: progresses through all possible greens.
Phone call 20: Oooh you are not going to be happy with me. I’ve been thinking pink is the new it-colour…
Shelldon
Nov 20th, 2007
I get point one and totally agree. But what’s with points 2 & 3? How do you know if there are discounts available or more favorable terms if you don’t ask? I ask all the time… for me it makes sense since there are certain jobs I know I’ve padded a bit on the off chance I do get asked for discounts (naturally discounts mean cash on delivery). Being asked for a discount isn’t a problem either. Just say no, no reason to walk away!?
Fred
Nov 20th, 2007
Hi Shelldon,
Since chatting to people about this article I realise that people think very differently about this. I think I have a problem with ‘discounting’ because I feel it’s not really fair on the clients who’ve paid full rates. This is my personal opinion – and since yesterday I’ve seen that not everyone agrees with my three points.
On the other hand, I reckon it’s perfectly OK to lower your price… but then take something off. If the customer wants R10 off his burger meal, then he forfeits the chips.
Remember how bummed existing owners were when Steve Jobs announced that he was slashing the iPhone price by $100?
Shelldon, instead of padding your fees maybe consider itemising them instead. That way, if your client asks for a lower rate, you can happily say yes – just no fries.
Cheers,
Fred
Dave
Nov 21st, 2007
Fred, I think you’re wrong. I always ask for a discount, no matter what the service or item for sale. A sale is intrinsically linked to price and therefore is and always should be negotiable. A bad businessman is somebody who pays R1 more for an item or a service than he needed to.
The amount of money saved by swallowing ones pride and asking for a discount or a saving is astronomical in the long run.
I can’t tell you how much money I have saved by simply not accepting the rate a hotel quotes me first up. They are often willing to move down three times before finally stopping, on numerous occasions I have negotiated Hotels down from $400 a night to $200 simply by refusing to accept their rate and knowing they can give me a better price.
Why should this be different when negotiating rates for somebody providing a service?
Shelldon
Nov 21st, 2007
Hi Fred.
I think in an idealistic world, then price would be pegged against product and service. This means that a discount would mean a reduction in product or service (like your burger analogy). Thing is though, I don’t believe that price can be an indication of quality any more. You can definitely pay more for less.
I find that these days it’s almost 2nd nature to ask for a discount. I always ‘pad’ my price because 9 out of 10 times I get asked for discounts.
I just don’t think it’s good business practice to get your back up if someone asks for a discount. I don’t, I just smile politely and start doing mental calculations on how to make the most of it.
My discounts always come with conditions though, like paying cash on delivery (as in notes), or maybe accepting a later delivery date (meaning those paying full price come first).
Great column though!
Fred
Nov 22nd, 2007
Sheldon – I never get my back up with a client. I always smile politely, and you’re right, this article is very idealistic. It does, however, give me a cool forum to rant when customers are difficult.
I guess it is a bit extreme to say that discounts are wrong, but I’m still convinced that discounting is unfair on those who pay full price. I think that it’s cool to lower your price, but then take one item off the menu. This does definitely vary for industries, since I guess some industries rely heavily on negotiation over price.
Dave – I guess in one sense this article makes me a hypocrite, since I also ask for a discount on hotel / car / suppliers etc.