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You are here: Home > Business > Sales Management > Avoiding the Customers You Don't Want: The 10 Warning Signs of Trouble |
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Casual Articles - Avoiding the Customers You Don't Want: The 10 Warning Signs of Trouble
Elementary School Fundraisers Are No Different From Others tter than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors.If you are thinking of elementary school fundraisers there are many things to choose from. There are many companies willing to provide you with items to sell and they usually do this at a reasonable rate so you can walk away with a nice profit at the end of the day. The elementary school fundraisers are usually left up to the moms of the kids to get these things together. To have your fundraiser you will have to decide on what product you want to sell.There is not much difference between elementary school fundraisers than with middle school fundraisers or high school fundraisers. The bottom line is that the school needs money for various reasons, but the product you choose may have to differ from elementary to high school. Another factor is that you may get a lot more he 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing Work as a Symphony The truth is, not all customers are equal. It's common knowledge: to succeed, we must concentrate our marketing efforts on the customers who are most profitable.Have you ever seen an orchestra producing some truly amazing and inspiring music. I remember seeing an orchestra playing at the Sydney Opera House (and for all the overseas people it is something you must do whilst in Australia). I was so impressed with the way all the different instrumental groups blended together to make this magical sound.The conductor’s role was very important in keeping all the sections on task and in time. However, all the groups must be able to work together (compliment each other) to produce beautiful harmonics. In a good orchestra, the wind instruments are not in conflict with the brass or percussion instruments. They all have a job to do, and they must be able to complete their task as well as support all the other musical sections in the proce I believe that the obverse is true, too. At the other side of the profitability bell curve is that pool of customers who drain our time, talent and energy, customers so enervating that they are not only not profitable, they represent real losses in money and momentum. I call these potential customers the Pain-In-The-Assets or PITA Prospects. Fortunately, you can frequently identify them within the first ten minutes of conversation. While the following observations may be drawn from the field of marketing consulting, I’m sure you’ll recognize (perhaps with a sigh) some of the tell-tale danger signals all professional service providers inevitably cross in their careers. 1) “I’ve tried X, and X just doesn’t work.” Advertising. Websites. Databases. Your would-be customer insists that they’ve already tried a common, business-tested tactic and found failure where others have succeeded. Instead of analyzing why it went wrong, or making the effort to learn from their experience, they assume the tactic itself is flawed. So they reject your very reasonable recommendation and move on to some other “magic bullet” solution. Which, given their impatience, is also likely to fail. 2) “My cousin’s nephew will handle the coding.” Ah, a two-fer danger signal. First, a desire to “save money” by consigning important work to an amateur (plus an implied disrespect for real, professional expertise). But as an added bonus, you get the specter of family politics. Any criticism on your part, no matter how diplomatic, becomes an assault on a loved one. Run! 3) “I love the way Microsoft does this.” Yeah, me too. And if I had a loose $250 million lying around, I’m sure that’s the direction I’d go as well. But I don’t, and that’s one of the reasons mere mortals, such as myself, have to do things differently. More modest resources demand alternative methods and adjusted expectations. Beware clients who set unreasonable expectations based on comparisons to businesses several leagues above themselves. 4) “You know, I showed this to my neighbor and now I have second thoughts” You’ve spent weeks conducting research, compiling information and composing plans. After several more weeks of discussions, negotiations and long, tedious meetings, the client has finally achieved internal consensus and committed to a plan. Or so you thought. One day you get a phone call out of the blue: your client contact discussed your plan with his neighbor (the propane salesman – the brilliant nephew coder must have been busy that day) and now, based on one over-the-fence conversation with someone who knows absolutely nothing about the business at hand, the entire project is torpedoed. Yes, it is time for second thoughts – your own. Dump this client. 5) “Our budget is kind of tight on this.” You look around your client’s office. There’s plenty of money to spend on $1,000 office chairs, gourmet coffee brewers and the collectible pinball machines in the corner. But not for your particular project. Is this really an issue about money? Or is it about what the client really values? If something is worth doing right, it’s worth spending money on. No money? No you. 6) “We’ve tried four vendors already and none of them could ‘get it.’” Sure, we usually believe that we’re better than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors. 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing Losing A Career Can Feel Like Getting A Divorce doesn’t work.”Job loss can be extremely painful because we have to start over and create a new identity. Clients tell me their feelings are similar to what they experienced during a bitter divorce -- a special form of the midlife crisis.Losing a career or business can also be a source of grief, anger and frustration. Starting a new business is an end as well as a beginnig. You may feel as though you are getting a divorce after a twenty-year marriage. Here's why.1. Sometimes the career leaves you. The field wants "younger people." Or you have to change in ways that violate your sense of self.2. Sometimes you leave a career that seems perfectly wonderful and fulfilling to those on the outside. "The money's so good," your mother says, "and it's not as if you'r Advertising. Websites. Databases. Your would-be customer insists that they’ve already tried a common, business-tested tactic and found failure where others have succeeded. Instead of analyzing why it went wrong, or making the effort to learn from their experience, they assume the tactic itself is flawed. So they reject your very reasonable recommendation and move on to some other “magic bullet” solution. Which, given their impatience, is also likely to fail. 2) “My cousin’s nephew will handle the coding.” Ah, a two-fer danger signal. First, a desire to “save money” by consigning important work to an amateur (plus an implied disrespect for real, professional expertise). But as an added bonus, you get the specter of family politics. Any criticism on your part, no matter how diplomatic, becomes an assault on a loved one. Run! 3) “I love the way Microsoft does this.” Yeah, me too. And if I had a loose $250 million lying around, I’m sure that’s the direction I’d go as well. But I don’t, and that’s one of the reasons mere mortals, such as myself, have to do things differently. More modest resources demand alternative methods and adjusted expectations. Beware clients who set unreasonable expectations based on comparisons to businesses several leagues above themselves. 4) “You know, I showed this to my neighbor and now I have second thoughts” You’ve spent weeks conducting research, compiling information and composing plans. After several more weeks of discussions, negotiations and long, tedious meetings, the client has finally achieved internal consensus and committed to a plan. Or so you thought. One day you get a phone call out of the blue: your client contact discussed your plan with his neighbor (the propane salesman – the brilliant nephew coder must have been busy that day) and now, based on one over-the-fence conversation with someone who knows absolutely nothing about the business at hand, the entire project is torpedoed. Yes, it is time for second thoughts – your own. Dump this client. 5) “Our budget is kind of tight on this.” You look around your client’s office. There’s plenty of money to spend on $1,000 office chairs, gourmet coffee brewers and the collectible pinball machines in the corner. But not for your particular project. Is this really an issue about money? Or is it about what the client really values? If something is worth doing right, it’s worth spending money on. No money? No you. 6) “We’ve tried four vendors already and none of them could ‘get it.’” Sure, we usually believe that we’re better than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors. 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing Learning from Your Employees' and Customers' Complaints 3) “I love the way Microsoft does this.”Listening to complaints, whether they're reasonable or not, is a part of every manager's job. Sometimes complaints can be overwhelming. However, by taking them in stride with an open mind, we can learn much from our employees' and customers' feelings about the workplace.After all, a complaint is nothing more that a person telling you that his (or her) needs haven't been met. As dissatisfied customers, they are giving us a second chance to correct something that should have been done properly the first time around. (In this case the customer happens to be your employee.)If you listen to them patiently and attentively, their complaints will alert you to a real or potential problem, or tell you of a better way to handle a situation.We are not use, however, to Yeah, me too. And if I had a loose $250 million lying around, I’m sure that’s the direction I’d go as well. But I don’t, and that’s one of the reasons mere mortals, such as myself, have to do things differently. More modest resources demand alternative methods and adjusted expectations. Beware clients who set unreasonable expectations based on comparisons to businesses several leagues above themselves. 4) “You know, I showed this to my neighbor and now I have second thoughts” You’ve spent weeks conducting research, compiling information and composing plans. After several more weeks of discussions, negotiations and long, tedious meetings, the client has finally achieved internal consensus and committed to a plan. Or so you thought. One day you get a phone call out of the blue: your client contact discussed your plan with his neighbor (the propane salesman – the brilliant nephew coder must have been busy that day) and now, based on one over-the-fence conversation with someone who knows absolutely nothing about the business at hand, the entire project is torpedoed. Yes, it is time for second thoughts – your own. Dump this client. 5) “Our budget is kind of tight on this.” You look around your client’s office. There’s plenty of money to spend on $1,000 office chairs, gourmet coffee brewers and the collectible pinball machines in the corner. But not for your particular project. Is this really an issue about money? Or is it about what the client really values? If something is worth doing right, it’s worth spending money on. No money? No you. 6) “We’ve tried four vendors already and none of them could ‘get it.’” Sure, we usually believe that we’re better than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors. 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing Are Your Retail Sales Staff Properly Trained ur plan with his neighbor (the propane salesman – the brilliant nephew coder must have been busy that day) and now, based on one over-the-fence conversation with someone who knows absolutely nothing about the business at hand, the entire project is torpedoed. Yes, it is time for second thoughts – your own. Dump this client.I was given a Blondie cartoon strip recently by a friend who was probably teasing me more about my age than anything else but it was a very poignant strip. Essentially Dagwood was motivated to buy a video recorder from a retailer because the young clerk suggested he was too old for this technology. What intrigued me most about this strip was that the naive young clerk failed to recognize the demographic target market Dagwood represents, average age of 39, male and known as the 'Unwired Baby Boomer' which comprise 16% of the population with an Internet use of 45% and 69% have cell phones. They tend to be married with children and do not have a lot of free time to devote to technology which means a more aware clerk should have provided a discussion on the benefits of the video ca 5) “Our budget is kind of tight on this.” You look around your client’s office. There’s plenty of money to spend on $1,000 office chairs, gourmet coffee brewers and the collectible pinball machines in the corner. But not for your particular project. Is this really an issue about money? Or is it about what the client really values? If something is worth doing right, it’s worth spending money on. No money? No you. 6) “We’ve tried four vendors already and none of them could ‘get it.’” Sure, we usually believe that we’re better than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors. 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing We're ALL In The Customer Business tter than our competitors, but our honesty compels us to acknowledge that, on the whole, most of them are fully competent and capable professionals. One or two may let a client down, but when it becomes three or four or more, I get suspicious. When there’s a high burn-through rate, chances are the fault lies with the client’s working process, not with all the vendors.Has anyone ever asked you what kind of business you're in? Of course they have and it doesn't matter what your answer is. You could be in the insurance, automobile, restaurant, Internet, investment, network marketing, writing, publishing, etc. The type of business makes very little difference, because we're all in the customer business. If we don't attract and subsequently keep customers there is no business.Many people think McDonald's is in the hamburger business. Or that Domino's is in the pizza business. How about Gateway being in the computer business? Nope, all of these companies are in the business of attracting and then keeping customers. The product is of little importance without customers.This is a very important key to remember in any business 7) “Give us a big discount on this – there’ll be lots more work ahead.” Such a deal! Do this project for less than its worth – and maybe you’ll earn the opportunity to do many more cut-rate, nickel-and-dime projects in the future. Again, this is about values. A prospect who makes price the top criterion for choosing a vendor is not the kind of client who respects quality work. 8) “Why? Because my competitors are doing it this way.” There are lots of good reasons for pursuing a policy – but to follow a competitor’s path usually isn’t one of them. You often don’t know why a competitor takes a particular action, and more importantly, without data regarding its effectiveness, you don’t know whether it works. A competitor’s behavior is poor rationale for an important business decision – but the application of that rationale is a clear sign of trouble. 9) “We need your quote tomorrow.” Drop everything, because this is a rush, rush, rush. No matter that there’s no time to gather relevant information or assess the true scope of the project – your detailed quote has to be surrendered right now. But funny thing… 10) “We’re still reviewing your proposal.” A few weeks have passed since you and your team stayed up until 2:00 in the morning to hammer out the proposal your prospect just absolutely had to have in the morning. But the initial deadline for the company’s decision has long passed and you can’t get straight answers from any of its representatives. Okay, so maybe that’s the way business goes sometimes. But if you eventually do get the work, guess what? The original deadline for deliverables will remain in effect, even though there’s now half the time to get the job done. Consider this bad start an ill omen. A final observation. To some degree, all customers present their own unique challenges. Part of our responsibility as professionals is to rise to these occasions, to deliver that extra edge of service or brilliance or persistence our clients may require. But when the relationship begins on faulty grounds – when the customer shows carelessness or lack of respect for your experience and expertise – watch out and reconsider. It may be time to cut your losses and move beyond the PITA prospects to serve the customers who deserve your best efforts.
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