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Rhonda Abrams The Passionate Entrepreneur

Rhonda Abrams, The Passionate Entrepreneur

Handling Tough Customers

by Rhonda Abrams

Very Good (21 Ratings)
3.9047619/5
Posted on Monday, February 5, 2007, 12:00AM
Customers -- can't live with them, can't live without them. Sometimes you'd like them to just leave you alone so you can run your business.

Unfortunately, without customers or clients, you don't have a business. And when you consider the situation honestly, you realize you enjoy dealing with most customers. It's just that small, annoying percentage that makes you want to pull your hair out.

Not all difficult customers are alike, however, so I've developed a field guide to help you recognize and deal with problem customers.

Here are the various problem customer types you're likely to encounter, along with suggestions on how best to deal with them:

Type: "Give them an inch." When you give a customer something extra, most are grateful, but a few take advantage by continually pushing for more.

Solution: Whenever you give a client something free, let them know the dollar value normally attached to that product or service, indicating that you're voluntarily waiving the charges -- in writing. When they start asking for more, just smile and say politely, "I'd be delighted to do that for you. Shall I add the extra cost to the contract?"

Type: "Just plain cheap." Some customers always want the least expensive option, then complain if things aren't first-rate. They're constantly negotiating and renegotiating. Eventually, you cut corners so you can still make a profit, and your work -- and reputation -- suffers.

Solution: Be less eager to land such clients. Don't lowball proposals just to get the job. Once you have them, give them choices in writing, making clear the downsides of the cheaper option -- and make them sign off on their choices.

Type: "Never satisfied." As a manager, you know you have to positively reinforce your employees with praise and recognition. But some customers think the only way to get a job done well is to continually criticize. Even when you do superb work, they find something to complain about.

Solution: Don't let it get to you. Praise your employees or co-workers in front of the client, so they know you value them. Also remind yourself that you're capable, and spend more time with the customers who praise you.

Type: "Micromanager." Nothing is as frustrating as a client who wants to stand over your shoulder, guiding -- or second-guessing -- your every move. But you know what you're doing, or they wouldn't have hired you.

Solution: Keep perspective. They're either nervous or controlling; either way, it isn't a reflection of your capabilities. Communicate with them often and clearly. Let them ask questions. But do this in a formal way. Set aside a regular time when you will bring them up-to-date, telling them that at other times, you have to have some time and space so you can get the job done.

Type: "Decide-o-phobic." Some potential customers are real, but hesitant. Others are "looky-loos." How do you tell the two apart so that you don't waste way too much time on prospects you'll never close?

Solution: When trying to get a job, indicate time limits in your proposal ("this proposal not valid after..." or "subject to additional charges after...") Limit the number of times you'll meet with a prospect before getting an agreement; after that, inform them you have to charge a consulting fee. Once you've landed the project, give this type of customer a few clear choices for each decision they have to make, with deadlines!

Type: "Always busy." They hired you. They needed you. Now they have no time for you. You can't move forward because you need their input. You're not making money; you're not signing new customers.

Solution: Give them deadlines. Let them know that you've got other commitments after a certain date. Start sending bills. If this happens a lot, structure your proposals so fees accrue if work is delayed due to customer inaction.

Remember, it's only a small percentage of customers who drive you nuts. Don't let those few affect the way you treat all customers or you won't have many left.

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4 Comments

Showing comments 1-4 of 4
  • jerry_sexton2000 - Wednesday, February 28, 2007, 8:31AM ET  Report Abuse

    • Overall: 4/5

    Don' be afraid to send a nightmare to your competition. This would allow you to focus on the other 99% while your competition spends his time on trying to please the unpleasable 1%!

  • Yahoo! Finance User - Tuesday, February 20, 2007, 5:34PM ET  Report Abuse

    • Overall: 5/5

    One of the best articles I've read on yahoo finance. Short, succinct, to the point. The advice is very practical and easy to implement. You have a new fan in me.

  • loray1 - Sunday, February 11, 2007, 8:19AM ET  Report Abuse

    • Overall: 4/5

    As a former small business owner, I recognize everyone of these examples. Great suggestions.

  • rsk1 - Tuesday, February 6, 2007, 5:26PM ET  Report Abuse

    • Overall: 4/5

    good

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