Entrepreneurs always have their ears buzzing with the notion that customers are the most important and that they should do just about anything to please them. Wrong.
If pleasing a customer is taxing your employees and causing frustration, or if it is causing your business to run into losses then the customer is not worth it at all. May be in the beginning you accepted to work for low because you really needed customers or may be that it all started off as an easy task and the workload just kept increasing. Whatever the reason may be you have to weed out these customers before your company faces some serious trouble. How do you know, however, that a customer is mooching off you and you have to show him or her the door?
Here are tips that will help you:
Be a good leader and do not ignore any complaints from people who work for you. You hired them because they are good at the job. Don’t disregard their complaints.
When you have a good company money manager you will know clearly how much you are spending on a particular customer and how much you are earning from him. If the difference is against you, there is a problem.
Talk to your Employees
It is fact that your employees actually understand customers better than you do. Therefore it is ideal to check with your employees and never ignore their complaints. You should never just ask them to work harder to please the customer. Sometimes, there is just no pleasing someone! Employees understand immediately that the pricing is not right. Listen to them and make immediate changes.
Your focus should be on the money you make i.e. the profit and NOT on the revenue. Therefore, before sealing a deal you have to do the math. If you already have a customer who gives you revenue but not profit, you know what to do.
Once you understand when it is time to let the customer go you should simply increase the price to at least double. When you do this you will win no matter what the result may be. If the customer does not agree to pay you will stop laboring for nothing. If he agrees to pay according to the new price you will get your labor’s worth!
Customers are vital but some customers are simply a pain! They get you to do a lot of work and pay very little. Understand when it is time to show them the door by listening to your employees and checking the profits, the labor that is required, and so on. Always focus on the profits before making a decision.