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Should You Ever Fire a Customer?

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Being a small business owner means dealing with all kinds of customers. They are your bloodline and maintaining good relationships with all of them is increasingly important.

But sometimes it doesn’t work. You try your best, but the business relationship, like any other relationship, is not quite working. What to do?

Bob Reiss of Entrepreneur magazine warns of 5 signs that should prompt you to consider firing your customer.

- The customer pushes relentlessly for a big discount. If you grant the discount,  forget about getting full price next time. Other clients might hear and get upset. Of course, this doesn’t mean you have to say no to a big and important customer. Think of other ways to make it up to him; better payment terms, a bigger order, throw in extras like shipping or advertising but don’t change the price. If this doesn’t work, proceed to stage 2.

- The relationship between you and your customer should be like a relationship between a doctor and his patient. His secrets should be safe with you. If you divulge information about his competitors, can he really trust that you won’t do the same with other ‘favorite’ clients? Business is business and friendship is friendship. Do not confuse the two.

- If you come across a rude customer, don’t allow it. If you allow it, it will continue. Same goes toward your co-workers or employees. If a customer is harassing them, you have to get in the middle. This behavior will not change if you tolerate it or brush it off.

- Customers that break agreements. If a good customer has fallen on hard times, by all means help him with all you can, but if a customer breaks an agreement more than once, it might be time to say good bye. It causes too much aggravation, and it costs you time and money.

- If a customer asks for a kickback or a payoff of any kind.

The goal of the customer is to get the best deal he can, and you have to respect him for it. Your goal is to set the limits to your flexibility, and adhere to your rules. In the long run you will better off and much, much happier.

Image thanks to http://www.flickr.com/photos/36001761@N02/3364250371/

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Should You Ever Fire a Customer?