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Posted

Greetings folks! Seeking ideas as we have a client that seeks our services and after past history with them we do not wish to continue any further transactions with them.

 

I am in charge of declining them and now I need to find a professional way of saying..Thanks but no thanks...go somewhere else.

 

We basically thought that last year when they threatened a lawsuit and we privately went above an beyond to appease them , that they would get the hint, that we were done with them. They are chronic complainers and love to weasel their way out of paying the quoted price. They just seem unyielding at getting a lot for nothing. So How do I phrase their recent inquiry for a quote this year on a service when we are done being taken to the cleaners. One of my associates said, Make the price so ridiculous they wouldn't entertain doing business with us...But that just seems shady .

 

Your thoughts or suggestions are welcomed.

Posted

In my industry, I simply price them out the door. I call it the APM discount. Assign whatever words you like to that acronym. Usually a competitor snatches them up and everyone wins, mostly me because they're gone.

 

I've got one customer who hasn't paid me for work done, meh, four months ago. However, I've got about ten grand of his equipment in the shop and, well, heh, it all starts looking the same after awhile and anything on my premises is subject to sale if not claimed.

 

Different industry. We're a lot less civilized than white collar folks. I'm sure someone else will have more appropriate advice.

Posted

Do you have full leeway in making the decision?

 

If so, change the ground rules.

 

1) Modifications/changes are billed at an hourly rate (slows down or monetizes scope creep or whatever).

 

2) Require payment in advance for the entire project, plus a refundable retainer to deal with their inevitable changes.

 

If they don't agree, tell them to kick rocks.

 

At least make am attempt at adding to revenue in a bad situation.

 

If you really don't want them any more and don't care about revenue (CEO should whack you in the back of the head... lol.. figuratively), tell them exactly what you said in the first paragraph.

 

If you are too scared to do that, make it sound like you no longer provide the service or don't have enough free human resources to complete it this year.

 

Lastly, you should hire someone tougher as your project manager or client liaison. Someone who pleases the client, but is quite firm with them. I used to play that role in a tech consulting company I owned, as it was crucial to the bottom line.

 

 

 

 

Greetings folks! Seeking ideas as we have a client that seeks our services and after past history with them we do not wish to continue any further transactions with them.

 

I am in charge of declining them and now I need to find a professional way of saying..Thanks but no thanks...go somewhere else.

 

We basically thought that last year when they threatened a lawsuit and we privately went above an beyond to appease them , that they would get the hint, that we were done with them. They are chronic complainers and love to weasel their way out of paying the quoted price. They just seem unyielding at getting a lot for nothing. So How do I phrase their recent inquiry for a quote this year on a service when we are done being taken to the cleaners. One of my associates said, Make the price so ridiculous they wouldn't entertain doing business with us...But that just seems shady .

 

Your thoughts or suggestions are welcomed.

Posted

Not sure what industry you're in Tayla but why not just tell them you no longer care to do business?

  • Like 2
Posted (edited)

If they are the ones asking for a quote for you to do the work, can you use an overloaded schedule as a reason?

 

"I'm sorry, but we are not taking on any more business at this time."

 

It may depend on your industry, but this happens very frequently in my business. I've said it, and I've had it said to me.

 

ETA: Or, tell them you won't be able to meet their schedule. If they need a quote by next Friday, tell them you won't be able to make that deadline. Again, this happens frequently in my industry, but it may be different for yours.

Edited by rester
  • Like 1
Posted

Im with carhill ...Price them out of the game..

 

But then I am also a pretty direct person that doesn't mince words or jerk around...If I don't want to do it or they piss me off, i tell them to leave...

 

The funniest part(or ironic), is that those same people actually wind up respecting me for having some balls, grovel back around, and actually start to do things my way...:laugh:

 

The difference also is that at this point in my life, its kind of about me..Don't get me wrong, Ill give you all I got, but I used to kiss everyone's ass..I don't anymore..It either makes 100% sense for me or I send it away...Period..

 

TFY

  • Author
Posted

Thank you each for the varying suggestions and options!

 

Our CEO is the one that made the order to NOT do any further business with them. He did not appreciate the lawsuit and our early appeasement to them to "make them go away". It was a tough call for him to lose money but at that point he didn't want to lose the customers we already had and the contracts that had more value. It was a fair call by him at the time. So I respected that.

 

It's a technology industry. SO Contracts are our main fodder of business.

This particular client is not contracted, we took them on as piece meal so there is no contract to bind us unless we negotiate the terms for a particular job they want done. We think its best to wash our hands of them.

Posted

Thank you for seeking our services again. You've been a valued client in the past, which we greatly appreciate. Unfortunately, given our current commitments to ongoing projects, we are unable to take new requests at this juncture. Happy holidays!

 

Don't burn bridges. They sound like nightmares, but you never know what life will bring down the road.

  • Like 4
Posted

OP, I mainly responded to the title, but do see that a colleague suggested making the price ridiculous. While you may, in an altruistic sense, feel that is shady, here's why it's not.

 

1. The customer tries to do what I call 'niggling'. Always complaining with the goal of getting the quoted price reduced.

 

2. The customer threatened a lawsuit.

 

All of this costs your company man/woman-hours and lost productivity on other profitable jobs. Hence, the costs should be allocated to the customer which has caused them to be incurred.

 

Back when I was working in the oil industry, we had a sign in the shop which essentially stated our shop rate, back then 30 bucks an hour. However, if a customer told us how to do the job, it was 60 bucks an hour. If the customer wanted to watch, well, they couldn't afford us. When there are a bunch of greasy guys wielding torches and welders and machine tools and moving dangerous objects around with cranes, customers got the message. Or they were shown the door.

  • Like 1
Posted

I suppose it depends on what area of work you're in. If I find myself saddled with a client who has a strong attitude of entitlement and an expectation that their work should take priority over other clients, I will write to them to say that unfortunately it doesn't appear that I can meet their expectations and I suggest they go elsewhere.

 

The people who have an attitude of entitlement tend to be the same people who won't pay their bills and who are always on the look-out for reasons to complain (to justify not paying what they owe). They're a liability, and the sooner you get shot of them the better.

  • Like 2
Posted (edited)

 

It's a technology industry. SO Contracts are our main fodder of business.

This particular client is not contracted, we took them on as piece meal so there is no contract to bind us unless we negotiate the terms for a particular job they want done. We think its best to wash our hands of them.

 

That's definitely the mistake.

 

I'd still force them into new terms under contract if I was in the CEO's shoes...

 

But otherwise, plenty of good ideas here.

 

 

 

It's actually a problem within your company that allowed the client to get to where they are today.

 

There should be very clearly defined SOWs (statement of work), binding legal contracts, milestones of delivery, retainer for any/all scope creep, etc...

 

And this is a Fortune 500? No wonder I nevet looked at working at these places. :D

 

My small business was, I believe a direct competitor (IBM was our main Fortune 500 rival) and we'd never dream of allowing a client that kind of latitude in a tech project.

 

You've really got to look inward on this one... fine tune your own business processes.

Edited by a LoveShack.org Moderator
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  • Author
Posted
That's definitely the mistake.

 

I'd still force them into new terms under contract if I was in the CEO's shoes...

 

But otherwise, plenty of good ideas here.

 

 

 

It's actually a problem within your company that allowed the client to get to where they are today.

 

There should be very clearly defined SOWs (statement of work), binding legal contracts, milestones of delivery, retainer for any/all scope creep, etc...

 

And this is a Fortune 500? No wonder I nevet looked at working at these places. :D

 

My small business was, I believe a direct competitor (IBM was our main Fortune 500 rival) and we'd never dream of allowing a client that kind of latitude in a tech project.

 

You've really got to look inward on this one... fine tune your own business processes.

 

Its a Small Business. Three owners and two distinct locations to corner the market since we are close to Military and Larger Business that look to us for Quick response, fair pricing and Knowledge of products/ skills.

 

The CEO is Primary owner, so he makes the final decisions, and his was to lose this account before it takes us to the cleaners. So As Taramere and Carhill suggested, when looking at the overall dynamics, this is in our best interest to cease them as clients.

 

I think angel.eyes suggestion in wording is vague enough that they can't get us on too much of anything for declining. We won't though be looking for them in the future as this is our goal to send them onwards to another company.

I agree with you Loveweary that process's can be improved or refined. Our business could certainly use that sometimes....

Posted
In my industry, I simply price them out the door.

 

We do the same, raise our prices till they go elsewhere and if they don't.. oh well.. nothing like making a killing on someone you would rather not do business with.

Posted

That's great if they weren't litigious cheapskates who hauled you into court with nuisance lawsuits and nickel and dimed you down to nothing on the backend. They're wasting her company's time, money, and people resources that could be better used elsewhere with more productive, more profitable, more pleasant clients.

 

Certain people you just want completely out of your life.

  • Like 2
Posted

A simple, "thank you your services are no longer needed" or, "thank you but we won't be renewing/continuing/available for services after x date."

  • Like 1
Posted
Its a Small Business. Three owners and two distinct locations to corner the market since we are close to Military and Larger Business that look to us for Quick response, fair pricing and Knowledge of products/ skills.

 

The CEO is Primary owner, so he makes the final decisions, and his was to lose this account before it takes us to the cleaners. So As Taramere and Carhill suggested, when looking at the overall dynamics, this is in our best interest to cease them as clients.

 

I think angel.eyes suggestion in wording is vague enough that they can't get us on too much of anything for declining. We won't though be looking for them in the future as this is our goal to send them onwards to another company.

I agree with you Loveweary that process's can be improved or refined. Our business could certainly use that sometimes....

 

 

Ooh. Sorry. My memory from old conversations here confused you with someone at a fortune 500.

 

Well, lesson learned for the CEO. I learned that one the hard way myself. :lmao:

Posted

This happened to me once, with a client I terminated a contract with due to his anger issues and bullying attempts. When he came back a couple of years later playing nice, I quoted him an exorbitant price, and he faded away. I don't think it's shady, because I gave the actual price he would have to pay for me to be willing to work with him again!

  • Like 1
Posted

Not that I have any expertise with this but how about 'While we thank you for your consideration, it's unlikely we can meet your expectations due to extremely high volumes. Have you considered Company A or Company B?'.

  • Like 2
  • Author
Posted
Not that I have any expertise with this but how about 'While we thank you for your consideration, it's unlikely we can meet your expectations due to extremely high volumes. Have you considered Company A or Company B?'.

 

Ohh that is charmingly nice way to escort them out the door.

  • Like 2
Posted

my position requires me to do this fairly often.....when this arises, I tell them that while I can't provide the level of service that they are looking for, I would be happy to refer them to other companies that might meet their expectation. Then rattle off some of my favorite competitors....this becomes a win / win.

  • Like 2
Posted

"No"

 

What more needs to be said?

Posted
Thank you for seeking our services again. You've been a valued client in the past, which we greatly appreciate. Unfortunately, given our current commitments to ongoing projects, we are unable to take new requests at this juncture. Happy holidays!

 

Don't burn bridges. They sound like nightmares, but you never know what life will bring down the road.

 

This. ^^^

 

The only reason I won't agree to the "pricing it out of their budget/out of the market" suggestion is you'd already indicated they're perfectly willing to agree to terms and then threaten lawsuits to change the terms of the agreement, after receiving the goods/services.

 

Charging 'em $1M for a $3K job and having them accept the deal just to [threaten to] litigate it out afterwards isn't really accomplishing anything. Simply refusing to get into bed with them to begin with removes their ability to cry "rape" and/or "foul" afterwards, yanno?

 

Best of luck, OP...

  • Like 3
  • Author
Posted
"No"

 

What more needs to be said?

 

The few times the word no has been pronounced is: May I get a raise, (no!), May we have an increase in operations cost (no! make do with less) , May our office close due to a gas leak ( No! go put a napkin over your face and sprinkle water on yourself so you can be recognized by the coroner) 0kay i made that last one up sort of. We did have a gas leak and were asked to stay but our county fire department mandated the evacuation.

 

We are not allowed to say no, seriously. We must often find ways to accomodate no matter what the request... because bottom line... no's get you fired. Unless your the owner, you can delve out No's til your hearts content.

Posted
This. ^^^

 

The only reason I won't agree to the "pricing it out of their budget/out of the market" suggestion is you'd already indicated they're perfectly willing to agree to terms and then threaten lawsuits to change the terms of the agreement, after receiving the goods/services.

 

Charging 'em $1M for a $3K job and having them accept the deal just to [threaten to] litigate it out afterwards isn't really accomplishing anything. Simply refusing to get into bed with them to begin with removes their ability to cry "rape" and/or "foul" afterwards, yanno?

 

Best of luck, OP...

 

Precisely!

 

These are the types of people who will accept any terms upfront, no matter how ridiculous, without batting an eye. Why? Because at the end of the day, once they get what they need, they have no intent of actually paying fair market price, let alone anything above that. They know full well they will never pay you what you think you've agreed to. They'll get what they consider their money's worth through a combination of badgering, bullying, threats, lawsuits over minutiae, demands for extra work to counter the deficiencies they deem have happened throughout the project, and payment delays. Deficiencies can ALWAYS be found no matter how meticulous and diligent the work team. They are experienced at their tactics, so it's a losing proposition for your company.

 

Unless you feel compelled to have the learning experience, you don't engage them. Just kill them with niceness and gratitude (:rolleyes:) and decline each time they inquire.

  • Like 3
Posted

Sorry you are going through this, seems pretty stressful to me.

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