Bad Clients are Bad for Business

Jun 1

We’re lucky to have really great clients at our company. They know we run a successful HR communication consulting business and that we charge for our services. For that, we strive to do more than we’re asked to do — we anticipate. We were profitable from the day we started. We didn’t borrow a dime.

Unfortunately, anyone who has spent any time in a services or creative business has run into the situation like what happens in the video above. Whether you’re running a business or are an internal HR consultant to your client group, remember what Robert Half said: Free advice is worth the price.

[via Swiss Miss]

About the Author
Frank Roche

Frank started IFRACTAL over 7 years ago with Sarah Chambers. Together, they've created HR communications and HR software for some of the world's leading companies. Frank is also studying Flamenco guitar and origami.

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Comments

  1. Bill Strahan says:

    Thank you, thank you, thank you. This was the best.

    I have been on both sides of the “video rental counter”, each for many years. This is perfect.

    This got my highest compliment. I knowlingly missed a train home in order to watch the rest of this video.

    Bravo.

    • Frank Roche says:

      Bill, that is high praise. If I miss the 5:35, it means I’m griding.

      Isn’t that video something? It really tells a great story…funny that the good people get this one so much, and I’m afraid the knuckleheads will miss the point. I love it.

  2. Love it thanks.

    I’ve used the restaurant analogy when buying too (PR and SEO) – “Would you go into a restaurant and pay them money to maybe get you food?”

    All the best from Brighton,
    Mark

  3. Frannyo says:

    Love this. LOVE.IT. I’m forwarding to every salesperson in my company. We are a tiny consulting company working for giant, Fortune 50 corporations, and I can’t tell you how many times I’ve had to talk them down off of giving write offs and discounts. Thanks!

  4. Rick says:

    I have this conversation all the time as a consultant. I recently even argued for 20 minutes with a colleague in another area of our company saying that I was NOT going to automatically cut my price to some number that the potential client wanted for a project. A number that he made up on the spot –with the promise of more work of course. No wonder that other area of our company loses money.

    I have also been asked to retoactively cut my fees on work that was praised and exactly what was requested but they decided after the fact that this was a service that they could have done in-house and saved some money. My only response was HUH?

    • Frank Roche says:

      @Rick, yeah, man, the only answer is “Huh?” I mean, in the real world (read: not in consulting) that would be called fraud for someone to talk something of value and then not pay for it. People get kicked off eBay for less. I am constantly astonished when stuff like that happens. Those are bad clients…my only solution? Dump them.

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