Time to Fire a Client

[gambrinus]

I have a friend that has a wholesale supply business and we were talking about "culling" clients. He said that once a year he goes through his client list and gets rid of the 5 clients who are most out of balance in the Aggravation to Income ratio. Do you do this? How often?

 

[GreenSky]

I have a friend that has a wholesale supply business and we were talking about "culling" clients. He said that once a year he goes through his client list and gets rid of the 5 clients who are most out of balance in the Aggravation to Income ratio. Do you do this? How often?

If I did that I'd wind up with no clients in 2 years.

SAI wouldn't even last that long.

Rick

 

[Norwayguy]

I don't drop clients in that manner. I will get rid of a problem client but I will keep clients who don't provide much income but also don't create a lot of service work because I never know when they may become a bigger client....I want to say I no longer do securities but if I had continued down that path I may very well have started culling the small clients do to all the FINRA hassles.

 

[senior-advisor-indiana]

If I did that I'd wind up with no clients in 2 years.

SAI wouldn't even last that long.

Rick

The only ones I get are the ones nobody else wants. Retention is wonderful though.

 

[VolAgent]

Don't you first have to have clients to fire them?

 

[djs]

Its a lot more fun to fire them first. Before someone says 'NO!', tell them that they are not acceptable to be your client and walk out.

Why fire someone who makes you money?

Dan

 

[rousemark]

Something I was taught when I started on the debit, and have found it has held true over the years,.. "If you get rid of a problem client, another will crop up to take their place so you might as well keep the ones you have."

 

[GreenSky]

Don't you first have to have clients to fire them?

That's why SAI doesn't even understand the thread.

Rick

 

[senior-advisor-indiana]

That's why SAI doesn't even understand the thread.

Rick

Hey I have grandparents you know...

 

[AgencyEquity]

Dropping clients should be done case by case and as someone mentioned, it should be more focused on problem clients. However, the more a client pays you in revenues, the more tolerance of them an agency should have. But a low revenue client who eats up your time is not worth it, however a low revenue client who is associated with a bigger account or brings you in quality business is worth it. A good way to avoid dropping a client and setting a client straight is lay out the ground work, perhaps something like "If our service are not meeting your needs, you should seek an agency where your needs will be met." What this does is two things, it will either get rid of a client or set them straight. Many times, it's sets them straight as they know your boundaries.