What do you do when a client isn’t the right fit? Sometimes, no matter what your business is, you are going to be approached by potential customers who want your services but who aren’t the right fit for the health of your business. When that happens, how are you mitigating the conversation?
I’ve seen a number of different strategies at play here. The reaction that seems the most popular among lots of businesses is to just ignore the problem/person and hope they take a hint. I’ve seen all kinds of highly professional people decide that it’s easier to simply ignore a potential customer in favor of not having to “fool with it.”
This is the exact worst thing you can possibly do, no matter what your business is. Deciding that you want to ignore a potential sale, no matter how small, can have an immediate effect on your public image. If you are unlucky, that person you are ignoring might feel compelled to share their experience, or lack thereof, on their social media. Or with their friends. Or maybe, they have a very oversized family, and they tell every single one of them. So, why not answer?
If you do reach out to this person, what are your options? You know they aren’t a good fit for your work. How do you convey the message without leaving a bad taste in their mouth?
The reaction among some segments of the professional services community seems to be to “price them out.” I’ve done this. I’ve been asked to do this by supervisors on multiple occasions. Most of the time, this entails a pretty significant time investment. You still have to meet with or talk to the potential sale, learn about their needs and then quote them a price, either written or verbal. On that call or in that meeting, your sole focus is to try and determine what you think this person might be willing to pay for the service they are requesting. Then, when you give the quote, you are trying to quote a price that is above what they are either willing or able to pay so that they will say “no” and you can move on to other prospects. Or, on the off chance they say “yes” you have priced the project high enough that even though they don’t meet your standard business guidelines, their business is financially worth the deviation.
This method has some pretty faulty logic involved. First, there is the time investment. You are wasting precious hours of your time to chase a white rabbit that you know isn’t what you are looking for. What could you be doing with that time instead?
The other major reason this strategy is a bad idea is because it creates an inaccurate perception of your pricing. Most people who implement this less-than-ideal strategy fail to remember that people talk. If someone is asking you for a quote and you give them a price that is different from what you would normally offer, you may lose out on other potential sales because of that action.
Let’s say you are pricing out a website to a small business owner. You know they aren’t a good fit for your company so the price you give them is 30% higher than what you would usually quote someone for the same project. They might not be a good fit for you but let’s say one of their dear friends is also a business owner of a different kind which is a good fit for you. When asked about your company, that first business owner is going to tell their friend that your pricing is just too high, and the second business owner is going to move along to other prospects without ever contacting you.
I’ve found myself in situations where this type of logic becomes problematic for other reasons too. This type of “fake” pricing muddles your ability to determine your work’s value. Let’s say that someone does say yes to a marked-up price. You might initially feel great thinking maybe you have been underpricing your work all along. Over time, what you wind up inadvertently doing is pricing projects based on what you think someone is willing to pay rather than what the project is actually worth. This is always bad. 100% of the time, this is bad. This creates a company culture where no one knows what true pricing looks like. And, if you have clients who talk to each other about their experience, you will start bleeding customers as they realize the discrepancies.
So, what is the answer when you are approached by a customer who isn’t right for your company? Honesty. Transparency. Kindness.
When you start working to craft transparent messages that turn someone away, it’s going to be difficult. Sometimes people are going to snap right back into your inbox demanding to know why you are turning them away. Sometimes they are going to blast you on social media for having said “no” to them. These are not the types of customers you would want anyway.
It’s important when you craft your responses to these inquires that you are kind, fair, and that you have created a message which leaves no room for interpretation or misunderstanding. Let’s revisit our website example, I might send a message to this person saying, “I appreciate you taking the time to reach out to our business. Unfortunately, we are unable to provide you with the type of website that your company needs. While we cannot assist you, we know that our friends at Business Down the Street might be better suited to this project. We hope you will consider contacting them.”
Why is this a solid response? It positions you as the person with a shortfall, not the customer. It offers them a solution. Best of all, it gets you some brownie points with your local business community by referring them to someone else. Very few people can receive a response like this and get angry. Most of the time they are going to be appreciative that you didn’t waste their time and that you did your best to help them.
Sometimes it’s going to take a few tries to get this message just right but keep working at it. Creating that perfect “no” message is worth much more of your time than dancing around the subject and taking meetings you never should have.
