In the best of all worlds you would enjoy working with all your clients, but unfortunately that isn’t always the case. Sometimes you need to set boundaries and “fire” clients that just aren’t worth your time and effort.

Read on to see my suggestions on when – and if – you should give up on a promotional products account. Here’s a letter from a promotional products distributor that best illustrates this not-too-uncommon dilemma:

“I have an immediate question and something that has given me sleepless nights. I’m into keeping all my accounts happy, just like you suggest. But, I’m contemplating firing a client. The problem is, in the past they’ve sent in a lot of business. As a company, their revenue is large, but in the last few months of working with them, they have not been as profitable as we would like them to be. They have become very difficult and irrational when I try to educate them on this industry. I believe they may be shopping my ideas and only looking for the lowest price. Do I fire this client, or continue sleepless nights or devoting my time to an unhappy group of people?”

Here’s what you can do. First, try communicating with the client about what’s going on. An honest discussion about your concerns may reveal some issues you may not be aware of. Be open to any feedback they may provide. Emphasize the benefits your company provides that they may not be able to receive from others. Keep the conversation positive and let them know how much you value their past business.

Next, use the questions below to evaluate not just them, but all your promotional products accounts. It’s a best practice to evaluate your clients periodically this can be a real eye opener.

  • Are they profitable? On average, can you make at least a 35% gross profit margin or more on the orders that you sell to them?
  • Do they accept the price you give them or are they always haggling?
  • Do they pay in a timely fashion—30 days or less?
  • Do they respect your ideas and your input without “shopping it?”
  • Do you enjoy working with them?
  • Do they have the ability to give you larger orders and repeat business?
  • Are they part of a growth industry?
  • Can they be a source of referral business for you?

If you answered yes to most of the above, it sounds like you have a good account. If not, it may be time to reevaluate your relationship. Not every client will be a good fit for you.

As a promotional products consultant, your good health and happiness are directly linked to your sales success. Think about what this client is costing you in terms of time, money and aggravation, and then I am sure you’ll make the right decision.

Additionally, make a checklist of the characteristics of your ideal client. Use this when you’re prospecting for new business. It will help you weed out the wrong type of clients from the start and save you time and effort in the future.

Once you’ve made the decision to let go of a client, take the high road. Don’t say or do anything that may come back to haunt you. Tell the client something such as… your company is moving in a different direction and unfortunately you won’t be able to work with them in the future. Wish them well.

I would like to hear from you. Have you ever had to “fire” a client? How have you handled the situation? Please comment below.

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One more thing… 

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Questions? Contact me anytime at Rosalie@promobizcoach.com