SALES AND MARKETING: You're Fired!

For a long time, I accepted the conventional wisdom that the customer is always right. Now, if he is a good customer, I still believe he is always right. After all, it costs a fortune to turn a prospect into a customer. So it only makes sense to keep clients so long as the relationship remains profitable, they are reasonable to work with and your team wants to work for them. But if you find yourself losing money or merely breaking even, or if the customer is so difficult that working for him is harming your company, then it might be time to fire the client. That’s right, fire the client.

A few years ago, I had a client who became a real problem. This lady was willing to make a considerable investment in landscaping to her very nice house, but she also believed she was the expert. She constantly second-guessed us and insisted we do things that we knew were horticulturally unwise.
 
While I understood my managers’ concerns, initially I was reluctant to address the situation for fear of losing her $30,000 a year in business. But it didn’t take long to see this relationship in a much different light.
  
While inspecting the job site, I watched one of my best team leaders ring a large bell attached to a pole in her yard before preparing to leave. Dumbfounded I asked him about what I had witnessed and he explained that the client wanted him to ring the bell when they began and when they finished their work for the day. “She writes down the time,” he told me. “I guess to make sure we’re here.” He confessed the practice was childish and insulting, but he believed we needed her business.
 
Well, not at that price.
 
The next day I told her that while we appreciated the business she had done with us, we weren’t a good match for her anymore and it would be best if she found another landscape contractor. She thought I was kidding and didn’t say much.
 
The next day this client’s husband asked me why I had ended our business relationship. As a business man the husband told me he would never fire a client. But while I could sympathize with his panic and confusion, I maintained my resolve and stuck to my decision to end our business dealings.
 
To this day I’m still glad I fired them. Why, you might ask? As a business owner, I had a major epiphany that day. My team realized making money was important, but it had to be for the right reasons. We were neither passionate about, nor proud of, the work we did for this particular client. Telling her we could no longer work for her was very liberating. In addition, my team witnessed me take a stand on principle, and they understood I was not willing to sacrifice team morale or their dignity for a few extra dollars.
 
So as you examine your accounts for this year I want you to consider your client relationships.
 
Think about the overall characteristics you want in a landscape client and then seek out those people that fit this specific client profile.
 
Then, sit down with your team and ask them if there are any clients you should fire and why. Keep the discussion strictly professional -- this isn’t a laughing matter. Discuss problematic customers and analyze the impact they’re having on your landscape operation’s bottom-line.
 
Ultimately, if the bad qualities outweigh the good, then you’ll know what to do.  

Marty Grunder is a speaker, consultant and author, as well as owner of Grunder Landscaping Co., Miamisburg, Ohio. Reach him at 866/478-6337, landscapesales@gie.net or via www.martygrunder.com.