How to fire a customer?

[907tec]

I've never had to do this, but I have come to the conclusion that I need to fire a customer. Does anyone have any advice on how to word such a letter? We have averaged about $30 a month from this account for the last couple years, and the difficulty of dealing with their staff far outweighs the meager profits. I would pay twice that amount just so I don't have to talk to their office administrator each month.

Has anyone gone through this? Any tips?

[BillyCarpenter]

Re: How to fire a customer?

I've never had to do this, but I have come to the conclusion that I need to fire a customer. Does anyone have any advice on how to word such a letter? We have averaged about $30 a month from this account for the last couple years, and the difficulty of dealing with their staff far outweighs the meager profits. I would pay twice that amount just so I don't have to talk to their office administrator each month.

Has anyone gone through this? Any tips?

It all depends. If it's an older machine I'd tell them that due to age/copies that I'm gonna have to do one of two things:

1. Raise the price of their contract (if they have a contract?)

or

2. I can no longer service the machine and they'll need to upgrade to a new machine.

That's the way I play it.

[M94]

Re: How to fire a customer?

Be firm and direct, don't beat around the bush and leave room for interpretation. I would maybe consider starting as an increase in charge amount, make it worth your time. That way if they aren't interested it's on them to quit or if they think you're worth the increase in price you'll at least start making money for the inconvenience. Whichever way you go, don't be vague. If you really don't want them to be a customer because they are a pain in the ass make that clear. Obviously you will want to word that tactfully so that they don't post it somewhere and have you look like the ass. If you want more specific help than that I would need more details about the situation, your reasoning needs to be clear and evidence based.

[BillyCarpenter]

Re: How to fire a customer?

Be firm and direct, don't beat around the bush and leave room for interpretation. I would maybe consider starting as an increase in charge amount, make it worth your time. That way if they aren't interested it's on them to quit or if they think you're worth the increase in price you'll at least start making money for the inconvenience. Whichever way you go, don't be vague. If you really don't want them to be a customer because they are a pain in the ass make that clear. Obviously you will want to word that tactfully so that they don't post it somewhere and have you look like the ass. If you want more specific help than that I would need more details about the situation, your reasoning needs to be clear and evidence based.

Agreed. Need more details.

If they sold the client the machine and it's not very old, it gets tricky. In my experience the problem starts when a copier company lets the customer get away with too much from the get-go and things deteriorate quickly. If I have a client that's calling me out needlessly, I charge their ass every single time. That cuts down on the bullshit.

Also, I'd consider how much influence the company has in my area. You don't want word of mouth to spread to potential customers.

[907tec]

Re: How to fire a customer?

Oh boy, where to begin...

To start with...we are but lowly dealers. Konica doesn't have any other representation for a thousand miles. We are remote enough that we can pretty much operate undisturbed: KMBS rarely contacts us for anything. This is a KMBS-direct customer, not a sale/maintenance contract that our dealership made. It is a pretty new machine (C368), and I have no issues with the machine condition or it's treatment. My problem is specifically related to their office manager and how much bs we have to endure. Every interaction is contentious and unnecessarily drawn out due to this. I spent 45 minutes on the phone this week trying to get a meter count from this person. Still haven't gotten it.

We are an extremely small outfit (down to 2 techs right now), and neither one of us has the patience to deal with the person. We are just flat out done. I can't even imagine a click-rate that would make me entertain the idea of keeping this customer....but it would be like a buck a page, minimum. mono. Five bucks color. Double-click on anything over 5.5x8.5.

[M94]

Re: How to fire a customer?

I would log time involvement and show it to the customer after a couple weeks, point out exactly how much time is being spent trying to help. Tell him that your business cannot sustain numbers like that, and that if the habits don't change you will need to start billing him an hourly rate for the actual time spent assisting him for anything that falls outside the letter of any agreement already in place. At 100$ an hour I bet he'd get to the point with any calls that still needed to take place, or you could rest assured that you would be making comfortably over a buck a minute and let him spend.

[BillyCarpenter]

Re: How to fire a customer?

Oh boy, where to begin...

To start with...we are but lowly dealers. Konica doesn't have any other representation for a thousand miles. We are remote enough that we can pretty much operate undisturbed: KMBS rarely contacts us for anything. This is a KMBS-direct customer, not a sale/maintenance contract that our dealership made. It is a pretty new machine (C368), and I have no issues with the machine condition or it's treatment. My problem is specifically related to their office manager and how much bs we have to endure. Every interaction is contentious and unnecessarily drawn out due to this. I spent 45 minutes on the phone this week trying to get a meter count from this person. Still haven't gotten it.

We are an extremely small outfit (down to 2 techs right now), and neither one of us has the patience to deal with the person. We are just flat out done. I can't even imagine a click-rate that would make me entertain the idea of keeping this customer....but it would be like a buck a page, minimum. mono. Five bucks color. Double-click on anything over 5.5x8.5.

Got it.

Sounds like you're the only company in the area that can service the machine. Correct me if I'm wrong? That will leave them in a tough spot.

I think honesty is gonna be your best approach. Just tell them that they're extremely hard to deal with and getting a simple meter reading is a chore. And then tell them that you while you hate to lose a customer that you think it's best for all involved.

[BillyCarpenter]

Re: How to fire a customer?

I would log time involvement and show it to the customer after a couple weeks, point out exactly how much time is being spent trying to help. Tell him that your business cannot sustain numbers like that, and that if the habits don't change you will need to start billing him an hourly rate for the actual time spent assisting him for anything that falls outside the letter of any agreement already in place. At 100$ an hour I bet he'd get to the point with any calls that still needed to take place, or you could rest assured that you would be making comfortably over a buck a minute and let him spend.

Forget what I said in my last post, I love what M94 said. Love it.

[907tec]

Re: How to fire a customer?

Got it.

Sounds like you're the only company in the area that can service the machine. Correct me if I'm wrong? That will leave them in a tough spot.

I think honesty is gonna be your best approach. Just tell them that they're extremely hard to deal with and getting a simple meter reading is a chore. And then tell them that you while you hate to lose a customer that you think it's best for all involved.

I like this approach, thank you. I'm not vindictive enough that I wish ill on the business, or want somebody fired. I just don't need to waste my time on a customer that gives me this much grief. I've been with this company for over 14 years now, never had to take a measure like this. I will try to type up a letter that is firm about discontinuing service, while maintaining that there are no hard feelings and it truly is the best choice for both companies.

[BillyCarpenter]

Re: How to fire a customer?

I like this approach, thank you. I'm not vindictive enough that I wish ill on the business, or want somebody fired. I just don't need to waste my time on a customer that gives me this much grief. I've been with this company for over 14 years now, never had to take a measure like this. I will try to type up a letter that is firm about discontinuing service, while maintaining that there are no hard feelings and it truly is the best choice for both companies.

The reason I like what M94 said over what I said, is that you give the customer a choice rather then cutting them off completely. But if you're done, use what I said.

[907tec]

Re: How to fire a customer?

Hahaha, unfortunately, both my patience and the dealership owner's patience has been exhausted. We are not interested in putting up with this customer any longer. Even if I wanted to increase their rates, my hands are bound: they are a customer of KMBS and I am just some tiny dealer. I have to battle KM every so often about them dumping a machine in my extremely-high C.O.L. area and offering major-city click rates. It is next to impossible to get KM to increase rates, with the minimal amount of "pull" our dealership has.

[SalesServiceGuy]

Re: How to fire a customer?

If you are a KM dealer, you signed a KM dealer agreement that probably says you must honor all national account installs delivered into your territory at the designated rates.

Talk to your KM dealer Manager and make sure he understands the situation.

His boss is likely to say tough, service the account or lose your dealership.

If this account is really important to KM they will offer you a bunch of freebies to offset your aggravation.

According to the legal document that you may have signed, you do not get to pick and choose what accounts you get to service.

If you are not a KM dealer, you can make your own decisions.

[BillyCarpenter]

Re: How to fire a customer?

If you are a KM dealer, you signed a KM dealer agreement that probably says you must honor all national account installs delivered into your territory at the designated rates.

Talk to your KM dealer Manager and make sure he understands the situation.

His boss is likely to say tough, service the account or lose your dealership.

If this account is really important to KM they will offer you a bunch of freebies to offset your aggravation.

According to the legal document that you may have signed, you do not get to pick and choose what accounts you get to service.

If you are not a KM dealer, you can make your own decisions.

Fact Check: True

However, there's usually language in your dealer agreement that allows a dealer flexibility. That's why it may be best to charge this customer for calls that are unnecessary.

[adecanmin]

Re: How to fire a customer?

That's a tough one. We've all had difficult customers. I've got customers that can be hard to deal with plus they owe us money. Is the customer close to your office or hours away? If they are not close I would charge a travel fee. I would also set up the email counter reads so you wont have to call them for that. I'm always respectful when I'm at their place of business even if they are difficult. I look at it as a challenge to win them over. You could always bring by some donuts and coffee next time you'll are out there. If they have network issues I would definitely charge them for that. Reaching out to Konica Minolta was a good suggestion. These are tough financial times and unfortunately every account good or bad is needed.

[KenB]

Re: How to fire a customer?

Tell the customer that you must charge them a 300% PITA tax.

Let them figure out what that means.