Business Success and Firing Customers

[Waxman]

My business has rebounded nicely since the recession and with some visual improvements and a bit of expansion (into used car sales) things feel nice and healthy. This seems to have brought about the unfortunate side effect of jealousy that manifests itself with 'hater' behavior. It is tough to detail the specifics here but suffice it to say I have had to take a harder look at some customer / friend relationships and make some tough (for me) decisions.

Recently I 'fired' 2 customers I had been friendly with for years. However, I felt I gave too deep a discount and too many perks to these customers and was feeling especially under-appreciated in these 2 relationships. I gave up on them and fired the customers / friend. I did so in a civil manner and (mostly) without the hostility I sometimes feel in similar situations.

I have mixed feelings. Part of me feels guilty and wrong, but part of me feels completely justified and ready to move on. It is a harsh reality in business to realize you need to be tough with people who take too much from you and give little in return. Why do some people feel justified in getting the better end of every single transaction with you? Why do they feel entitled to special treatment, perks and deals? They fail to say thank you and good job when warranted but always speak their mind fully when you miss a spot on their car.

Running a carwash and detail shop and selling used cars is a tough business. No one hands you anything and you work hard for every dollar. I have reached a point where I feel successful. So why are people exhibiting jealousy and hater behavior?

What do you do when facing a similar situation?

 

[MEP001]

I've seen others fall into the same thing where a customer acts friendly just to get a deal or preferential treatment. FWIW, it ****es me off because I can't stand a phony. A few regular customers will shoot the breeze with me for a few minutes when they see me and it's obviously just being social, but some start asking too-personal questions and my brain wants to peg them as a leech. I've noticed that when I keep the chatter to the nice weather and such, the latter type disappears as a customer.

 

[soapy]

One of the best things ever taught to me years ago was by a older very successful business man. When he saw my brother giving special deals to all his friends he asked him why. My brother said they are my friends so I give them a special deal so they will keep trading with us. He told my Brother" Look at it this way, you have to make money off your friends because your enemies won't do business with you" My dad ended up quoting that a lot.

 

[rph9168]

Losing customers that way is tough but you have to remember that you are not running a non-profit charity and at some point profitability is much more important than letting friends or others take advantage of you. I used to give friends a break but I always made sure I made a decent profit. If they didn't like what I offered I took some satisfaction that is was their choice if they decided not to do business with me.

 

[Earl Weiss]

You could try to have them fire themselves. At some point be straightforward and say that:

" due to ever increasing cost structures your pricing is now $xxx.XX this provides you with value and allows me to pay my bills. I hope that this is acceptable to you. I value your friendship and hope you continue as my customer, not based on friendship but because i provide a quality service at a good value.

If you choose to no longer be my customer because you find a more suitable value elsewhere we can still be friends. " .

 

[Mr. Clean]

This is why business owners stay away from the cash register. Employees don't have the latitude to give discounts. Personally, I look at how good a customer/friend they are and how frequently/freely they spend with me. If they always buy the cheapest wash, they're telling me it's about them and I don't discount, but may throw in an upgrade when I meet them. Occasionally, they will ask for the cheapest wash and I'll end up selling the top package for the price of the mid-level & we both feel good. Frankly, I don't think I do enough to reward loyal customers other than to keep prices reasonable so they can afford to be loyal.

I agree, better cash flow reduces tolerance, but I try to focus on turning away the dirty truck beds and rusty/damaged vehicles.

As a humorous aside, I had an older guy in a mini van once ask me for a discount. On his vehicle was a bumper sticker from a "gentleman's club" in the area and I told him that if he could afford to visit this club he probably didn't need a discount. His proud reply was that his daughter actually danced there. No discount and quite the chuckle afterwards.

Tough issue, but you have to go with what soothes the belly.

MC

 

[Tom Thumb]

Sometimes we have to look in the mirror and ask ourself " why did we do this"
I think most of us owners have made that mistake at onetime or another.

 

[getnbusy]

I used to give away washes to law enforcement. Still do on a limited occasion. In my small town we only have 6 patrol cars. The chief came in one day and asked about a fleet account. I gave the chief a code with a few washes on it for the "Chiefs" car so he could try it out in hopes he would find value and purchase the fleet account. Instead, he kept coming back asking for more and playing on my emotions about a limited budget wihile driving his brand new patrol car. Then one day I spotted his secretary punching the code in to wash her personal car. The next time he came back asking for more codes, I reminded him that he approached me with interest in the fleet program, and told him what I could do. The 20% discount I offered him on the express wash wasn't enough. I finally had to tell him that the town didn't give away water, and I can't give away washes. He stopped asking for freebies, but I have never seen him or any member of his department come in and buy a wash. All he wanted was something for nothin.

Similar situation with the hi way patrol.

 

[mac]

At first I felt bad about firing a customer. Eventually though I got to liking it. It improved my business. The ones I fired were the ones that complained about every invoice. I could never make them happy and got tired of adjusting the bills. Now these a++holes are bothering my competition. One guy in particular, I flat out said to him, "Go F++k yourself and throw my number away." A week later he calls back wanting more service. I had to repeat my instructions to the idiot. Life is too short to deal with stupid people.

 

[cap732000]

Absolutely! Way to often... for me!

 

[cap732000]

getbusy I had the same problem at one of my washes I put in multitrons and got some tokens that only the pd had before to long I noticed for whatever reason that I thought other people was using them and by gosh I was right! I saw a family member using them! So they were giving them to family members. I just quit giving them to the chief he doesnt hardly talk to me and then have had other officer whine oh we paying out of our pockets. Im doing what I can to remove myself somewhat from the small town politics. I have done many things for the school and community but it seems like they come and ask me for money and have actually heard one of the people who benefited tell a close friend that I only do it to try and show off my money! Hell Im not rich the banks just love my payments every month. It frustrates the hell out of me you try and do something good and get critizied! Oh but they still PAY to use my automatic! quite often!

 

[Waxman]

it is definitely a challenge to not become jaded in business. external forces exert pressure on business owners; customers, employees, even vendors all can, at times, attempt to chip away at who we are as men ( and women) and as business owners.

my problem is that i am too nice and a.) people think that my kindness is weakness and b.) if people take advantage or act in a rude manner, my tolerance can get very low for the rude behavior they exhibit and then they act offended because i have always seemed so nice. tricky!

 

[cap732000]

Boy sounds like me to a "T".

 

[Scrub Free]

One of the best things I learned was how to fire a customer. Its healthy for you and your bottom line. Of course you should always be mindful of the repercussions. I often have to remind myself that "Money has no emotion".

 

[rph9168]

I always felt that the best way to deal with a friend or a frequent customer that you feel is taking advantage of you is to let them know what they need to pay for your services and let them decide if they want to continue. That being said I remember once firing a customer on the spot for verbally abusing one of my employees. Sometimes people can be such a$$es that you just have to take action.

 

[mmurra]

I'm with Mac. Life is to short 48 years in the wash business, could not be here without firing the a^^holes.

 

[aca carwash 2]

Unfortunately people dont respect you any "more" by getting a deal. They respect you by the quality of your work and client base. In other words no special deals, let them deal with the nect guy in charge. The proof is in the pudding or quality of your work. If you are good and know whst it takes to be good or have a family to feed you wont give it away unless your just not a good businessman.

 

[Waxman]

well put aca. took a long time to learn this. i am a slow learner with some things but once i learn it sticks.