How to fire your worst clients.
Some here know that I'm in the print game.
Yesterday I had a client request a quote on swing tags and business cards, (client is a specialty sneaker shop) I hadn't heard from this client for over 12 months, one of my sales reps had made 3 calls on the client in that 12 months, and had indicated that they we were not likely to hear from them again. Last time I had contact with the client was 13 months ago and I quoted on the a fore mentioned swing tags, the client had bucked at the previous price, and indicated they would go somewhere else when I wouldn't budge. They took 4 months to pay their outstanding account!
OK no great loss, their 2009-2010 spend was $800, their 2008-2009 spend was $500. Keep in mind my daily sales target is over $2200.
So I do the quote, not expecting any great result, swing tags come to $228.00, almost exactly 4 dollars more than the last quote, over a year ago, Business cards come to exactly $11.00 more than the previous quote which was 16 months ago. Estimated GP on both jobs would be roughly $120.00
The client emails me the 2 last quotes, asking if I can price match from 13 months ago (swing tags) and 16 months ago (business cards).
Here's my Reply:
Hi Phill,
Thanks for requesting the earlier quotes.
Phill I was reviewing your account spend over the last 12 months and note that you haven't placed any orders with us here at (my print store) in that time period, and that the invoice from the last order took nearly 4 months to be paid. Well outside of our trading terms. I also note that we appear to no longer produce your decals.
Phil I'm not prepared to discount our pricing at this point, and must insist on payment up front for this job if you decide to proceed.
Kind Regards,
He replied.
All good Brian. Thanks anyway…we will be getting our printing done elsewhere.
Regards,
So here's the drill. I sent 3 payment reminders and 2 phone calls to this guy to collect the overdue account, my sales rep called on them 3 times, I did 2 estimates yesterday for no result, also took the time to review his account and send the email. All for a potential 120 dollars profit.
Never again. This guy is a time vortex for such a little result, I'll stick with my $85000 pa clients from now on.
Protip: Send your worst clients to your competitors.
Yesterday I had a client request a quote on swing tags and business cards, (client is a specialty sneaker shop) I hadn't heard from this client for over 12 months, one of my sales reps had made 3 calls on the client in that 12 months, and had indicated that they we were not likely to hear from them again. Last time I had contact with the client was 13 months ago and I quoted on the a fore mentioned swing tags, the client had bucked at the previous price, and indicated they would go somewhere else when I wouldn't budge. They took 4 months to pay their outstanding account!
OK no great loss, their 2009-2010 spend was $800, their 2008-2009 spend was $500. Keep in mind my daily sales target is over $2200.
So I do the quote, not expecting any great result, swing tags come to $228.00, almost exactly 4 dollars more than the last quote, over a year ago, Business cards come to exactly $11.00 more than the previous quote which was 16 months ago. Estimated GP on both jobs would be roughly $120.00
The client emails me the 2 last quotes, asking if I can price match from 13 months ago (swing tags) and 16 months ago (business cards).
Here's my Reply:
Hi Phill,
Thanks for requesting the earlier quotes.
Phill I was reviewing your account spend over the last 12 months and note that you haven't placed any orders with us here at (my print store) in that time period, and that the invoice from the last order took nearly 4 months to be paid. Well outside of our trading terms. I also note that we appear to no longer produce your decals.
Phil I'm not prepared to discount our pricing at this point, and must insist on payment up front for this job if you decide to proceed.
Kind Regards,
He replied.
All good Brian. Thanks anyway…we will be getting our printing done elsewhere.
Regards,
So here's the drill. I sent 3 payment reminders and 2 phone calls to this guy to collect the overdue account, my sales rep called on them 3 times, I did 2 estimates yesterday for no result, also took the time to review his account and send the email. All for a potential 120 dollars profit.
Never again. This guy is a time vortex for such a little result, I'll stick with my $85000 pa clients from now on.
Protip: Send your worst clients to your competitors.
.