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I have worked with many clients and have gotten a pretty good sense if a client is going to be easy to work with or not and in this situation, I feel like I'm going to get stuck with a huge headache. I can't say for certain, but it's just a feeling that I am getting from the conversations I had with this client so far.
Money wise this is a pretty good project, but I won't suffer if I don't take it. What would you guys do in my shoes?
As of right now, I am seriously considering refusing the work before a deposit has been made and the contract signed. Has anyone been in a similar situation. What is a polite way of doing this?
The sign of a mature business is one that has the luxury to not take on a client, or fire a client, because of the burden they represent to the business.
I spent three years of my career without having the luxury of not taking certain clients. Although I do not know your particular situation, I would suggest to you that opportunity cost aside, there is one thing that you should consider when deciding to take or not take on a client:
Cash Flow
If you took it and everything went well, you wouldn't trust your judgement NEXT time and will run into the situation again. And if things didn't go well, you would be kicking yourself for NOT trusting your intuition.
While I don't know what the details of the project are, I've found that the easy way out in situations like this is to tell the customer that you went over the requirements again and realized you don't have the (resources/experience/whatever) right now to do it, and recommend another shop to do the work.
I can't say for certain, but it's just a feeling that I am getting from the conversations I had with this client so far.
If there's anything I've learnt over the years it's to trust my instincts. If you can do without them financially I'd get out now before you start. It's probably be a lot easier rather than down the track.
Tell the client that you charge all consultations in 1/2 hour blocks; thus, a 2 minute call will be charged a 1/2 hour of work.
Charge by the hour, not by the project, so that she knows that any changes are going to have to be paid for.
If you make this clear, and actually enforce it, the client may decide not to work with you. If they do decide to work with you, however, at least you will be well-compensated for the headache.
I use an excuse something like that for P.I.A. clients on a frequent basis.
If you choose to back out of discussions, a graceful way is to say that an existing client has placed a greater on you or your company's resources.
As you back out of the deal, you might say that you don't want to leave the prospect high-and-dry. Ask if you can pass their name along to a few other consultants in your area. If the prospect says yes, then you can contact a few peers and let them know about the lead.
When contacting my peers, I only identify the prospect and their need. I'd say that I'm not able to follow this lead now, but I'd invite them to contact the prospect to learn more info.
I would not express any opinions about the prospect's personality. Let each consultant form his/her own opinion of the prospect.
One person's headache client may prove to be another person's dream client. By keeping your statements objective
If you handle the situation gracefully, the prospect will be understanding and appreciative of your help, while your peers may be happy to learn of a lead. If you can afford the lost cash-flow, you can make this a win-win-win situation.
If the prospect has unreasonable expectations of the profession or its rates, then sometimes you can make a persuasive case by letting others repeat your opinions in their own words.
For example, the prospect argues that $100/hr is too high of a rate for your services. You argue that it's industry standard, but the two of you can't come to an agreement. You gracefully bow out and let your peers know about the prospect. They submit bids around the $100/hr range, and the prospect learns that "industry standard" means exactly that.
Just a small addition, it seems to me that clever businesses the world over choose the clients they want to serve rather than letting things happen the other way round as if by random.
Its' been said that "we get the customers we deserve" I am not sure by whom .. but it bears thinking about.
If you can see warning signs its certainly worth thinking hard about it. Though could it be that a way to ensure they do not come to be problems in reality may be a better way to grow your business long term?
Customers can be difficult, some of the most difficult can also in some circumstances be the most rewarding.
No one can take these decisions for you because no one knows what your priorities are and what this client is like.
Scenario is;
New junior person coming into their position who is making it her business to engineer an excuse to find fault with all encumbent agencies and fire them. A really unfriendly, sour personality who has no doubt left a wake of disgruntled suppliers in previous roles. She is extremely insecure with 'knowlegeable companies' as she is out of her depth and sees expertise as a 'threat' rather than a resource for her to rely on.
New senior person coming into their position, the boss of the above, who is a lot nicer personality to deal with, but 'fudges' every difficult issue and prefers to brush it under the carpet until it leaps up and bites at a later date.
Our position: Having been engaged as 'consultants' and a 'creative service' company all our recommendations are either rejected, found fault with (with no contructive alternative/amendment proposed by the client) and where they are amended by senior person the holes in the strategy/tactics are massive. We then respond by pointing out the potential shortcomings and proposing solutions which disappear into the ether until we raise them again, asking for feedback/decision so the project can proceed.
Now our contract is up for renewal. Do we:
a) implement flawed strategy and rationale, knowing full well that all the errors will come home to roost and we will be asked 'why didn't you tell us' or we will just be blamed as a 'bad agency'.
b) continue to 'do our best' and be potentially viewed as a thorn in the side of the two clients (who are very inexperienced) and be percieved as 'difficult' because we can see an accident before it happens and try to avoid the crash in the first place.
c) resign the contract which is extremely lucrative, but is becoming a draw on our resources (thereby reducing the profitablility of the account), creating tensions between us and the client and is actually preventing us from developing potential from existing clients and finding new. Because of the lack of decisions and activity coming from the client we are continually on 'stand by' waiting for the dam to burst and for us to be busy with them - meanwhile, we are hesitant to develop potential work with other clients for fear of being snowed under and not being able to cope.
My instinct is try 'b', but be ready to implement 'c'. I feel that we are on a 'hiding to nothing' as we are damned if we go along with it and damned if we try to do our job and do our best. Therefore, if we do 'b' we can at least retain some dignity and can provide (if asked) why we proposed a certain course of action.
We will definitely suffer financially in the short term, but have to be confident we can recover in the medium/long term..
Oh joy!
That said the clients I work hardest to maintain as happy satisfied customers are those where:
1) I can be reasonably proud of the work I have done for them in that it is a sensible solution for their needs which should stand up to others (knowledgeable others :-) critique of it.
2) They are likely themselves to be satisfied with the results that the work brings and are therefore likely to refer others to me - give me postive word of mouth, and I can use them as a reference for potential new cients who I may be getting to know.
3) It goes without saying that they must pay my bills in reasaonable time and that the work is viable in that it pays for itself reasonably in a manner in which the client is happy with.
On these points I am not sure your client would be a priority for me. That said you do say that they are a lucrative account.
How much you can afford to rely on an account which you may, by reading between the lines, loose anyhow and may in the meantime and future badmouth you .. is indeed a difficult balancing act.
Best of luck to you :-)
Most of all our new business comes from referral from existing clients. That's why I can be sure of the standard of our service we provide to clients.
In our own soul searching about his client, we feel we have given it our best. How lucrative and profitable they are is sometimes secondary when in a situation where you are at the mercy of the clients own inexperience or private agendas.
When I worked at other companies (which have been mainly small organisations) I have seen one dominant client, who are often very difficult to do business with, literally monopolise time and effort only to pull the rug eventually - you are always one step away from losing the account.
When they do this, you are left thinking 'if only I had developed existing client A or B, instead of devoting all this time to a lost cause'.
In this particular instance, I know they have fallen out with other agencies and the client (personally and their company) get a reputation.
Sometimes I think we all should have the courage to walk away and have confidence in our abilities.
I intend to send a email to clarify the situation after Easter and will let you know the outcome...
You may also refer them to a separate "division" or friendly competitor, so that you can still see the outcome although you have elected not to take on the responsibility.
I've decided you can lead a horse to water but you can't make it drink. I too rely on referrals and recommendations from clients and colleagues so I want to ensure that I can help the companies I work with become more successful. If the companies themselves are the ones that are stopping this for my own reputation (and sanity) I should walk away.
My decision is to politely tell them I can do no more. And I feel better for finally making it :)
then think of the potential client not as a cash source but as a referral source.
One time I referred a client to another company that I knew because I was just too busy to even deal with it. They turned the client away because "the client didn't fit the profile of the type of customer they were looking for."
Last year I finally fired a long-time client. Ahhh, the relief. It's one of the best part of being in business for yourself - you get to fire the boss!
