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Archive for March, 2009

Fire the really bad customers

March 24th, 2009

There is a point in any relationship where the parties involved are not all being treated fairly. It is extremely healthy to evaluate business relationships every so often. In business, a variety of factors help determine the price of goods and services.  A few of these factors are shipping, storage, insurance, labor, and raw cost of materials/ items for sale. On occasion, depending upon the product being sold, sales persons may think that by discounting a product to make the sale is a good thing. If this product requires a consumable item to go with it then the customer will keep coming back for more and more of this product. The product may be something that the customer buys regularly as well. For example, in the competitive world of private party catering, the caterer may offer a “first catered event at a discounted rate” in order to gain a new customer who will pay for the private party catering on a regular basis. Next the customer comes back for more and begs for and receives this “discounted” rate again and again and again.  Now…months later all of the associated costs are way up and this customer refuses to pay more.  The solution to this problem is simple.  Fire the customer.  This can be done in a very tactful way.

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