How to Fire A Client

Firing a client/customer is an essential skill every business person needs to master. In the “old days” before the internet, email and social platforms it was not as complicated. You would simply tell your customer to take their business someplace else. Today that simple exchange can be the subject of discussion for dozens or even hundreds of people your now former client decides to complain to online!

First let’s take a look at why clients need to be fired occasionally. Considering how much time and money we invest trying to get clients, why would we send them away? Perhaps the most common reason is that you just don’t like (get along with) the client. That is the answer I get when I discuss this topic with business owners. When I challenge them by asking ‘why’, it is like a flood gate was opened and reason after reason, accentuated with expressive language, gives a much clearer picture of the situation.

In no particular order, see if you recognize any of these clients. The perfectionist nitpicker, no matter what you deliver to this client they will find something to complain about and demand a discount or other remedy for their invented quality dispute.

The busy man who is too short of time to return your call but expects you to answer every call and email instantly.

The negotiator who wants you to cut the price once the project is in motion. 

The speed demon who insists that their order needs special attention and to be moved ahead of other pending projects, with no rush fees, of course.

The shopper who only gives you work after shopping your competitors, thereby ensuring that you are the lowest (least profitable) operation in town.

The educator who always tells you that you are doing things all wrong and don’t know how to run your business.

Let’s finish up this group (obviously not a complete listing!) with the client that only pays you when they are ready to place another order. Essentially taking a loan from you that never gets paid back.

Any one of these clients would be a candidate to be fired. The starting point and end point in making that decision is the profit or lack of profit to your business. Obviously nonprofitable relationships need to end. Profitable business has to be measured against more profitable business if you had the time to handle it. It is easy to understand a client that constantly brings you $2000 annually being replaced with one at the $4000 mark, especially if the current client fits into the above list!

How to actually do the firing is critically important. Business consultants agree that in-person conversation is the most professional way to end the relationship. They also agree that the stated reason be true (real) as fictitious reasons have a way of getting back to you! Avoid any negative comments. (Remember the internet!)

Always start with a thank you for past business. The most universal reason for ending the business relationship is that you are pursuing several large volume clients and must devote more time to that activity. Some consultants suggest giving a referral to another business that can handle their business. Keep in mind that a client that was a problem for you might also be a problem for the business to whom you refer them. It might be worth talking to your competitor to see if they want the referral.