what to do with a lousy client?

young businessman staring at laptop computer in officeexamine how you’re managing the relationship.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

question: i have a client that is a not-for-profit and they are having a dinner and expect me to attend as well as take an ad.

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however, they are a lousy client. they do not give us the requested information until the last minute and then complain we are always late with our report. they pay us months after the bill is sent and then only after quite a few phone calls, and then they complain about the fee being too high when it is half of our time charges – they are on a fixed fee and don’t let us raise it each year. and now they expect a “contribution.” what should i do?

answer: go to the dinner and take an ad – not the largest, but one that won’t embarrass you. there will be board members and other people at the event whom you can or should network with. you should consider the dinner as a networking event.

as to “lousy” client, i don’t believe there is any such thing as a lousy client. if you have them, and they pay you, they are great clients.

if there are any problems, then it is your fault because of the way you are managing the client’s work. and if it is not your fault, then you should drop them. pretty simple!

let’s examine your complaints.

  • not getting the requested information on time indicates a lack of proper followup and communication on your part. the followup should consist of clear instructions and understanding of what the client is to provide and when. not getting it on time shows that you either weren’t clear enough or they were not fully aware of what they were to provide and when, and that they did not understand or realize the importance of getting you the information on time. it also indicates that you did not make effective calls either to the person supposed to provide the information or the person you contracted with.
  • it is always a good practice to set a timetable detailing yours and the client’s responsibilities. this should be referred to specifically when requesting delinquent data.
  • if your staff person does not get a response, then you should call the client directly.
  • late payments are always your fault. accounting fees are never material. past due fees can become material. your job is to not let them become material. the day after payment was due and not received is the day you should call the client to inquire why you weren’t paid. i usually ask if there is a problem with the service since we weren’t paid, and would appreciate a check being mailed or i could take their credit card number. if, perchance, there is a problem this gives them an opportunity to complain and you to respond.
  • if the fee is too low, raise it to what it should be. if you cannot get the increase, then as far as the client is concerned it is the right fee for the value they are getting. if the value is not perceived then it is your job to transmit value in a way the client understands the value. do your job well and you should get a higher fee. do it poorly and you won’t get it. the client will not pay more than the value to them.
  • with respect to the fee, you need to consider if there are competitive pressures. competitive pressure connotes a degree of sameness in the service. if you are better, then you should get paid accordingly. if not, then you are likely getting the right fee. if you cannot make money on it, you should examine your procedures and work methods, and fix them.
  • treating the client or acting like they are a lousy client will transmit that to the client and certainly to your staff, making it a self-fulfilling prophecy. don’t do it!
  • as long as you committed to do the work, it should be done the best way you can.
  • only after all of the above fails should you then consider dropping the client.

client management needs to be given a high priority when running your practice. be deliberate, focused and results-oriented.