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Old 2nd June 2019, 08:07   #11
MSS
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I am livid. A customer I have gone to for years was informed a couple of months back that my prices were increasing to £x per hour.I was there yesterday and invoiced her for the work done, 3 hours during which she offered me a cuppa , which I accepted and stopped for about 10 mins. Today I get an email commplaining about the price, saying its more than she pays anyone and I didnt work the 3 hours anyway, I stopped for 10 mins. I have replied politely telling her to deduct from the bill the cost of 10 minutes work and not to ask for my services again. All this and the house is for sale for a 7 figure sum

Be grateful Rich as it could have been worse. She could have tried to charge you for 10 minutes of her company during your tea break!
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Old 2nd June 2019, 09:07   #12
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Be grateful Rich as it could have been worse. She could have tried to charge you for 10 minutes of her company during your tea break!
Now that’s a scary thought Maninder
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Old 2nd June 2019, 10:15   #13
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This one has been a p I t a for long enough, so about time she was binned
Good decision - but sometimes a difficult one - when starting out you done want to lose any customers- but when well established you can afford to be selective.

I always found the 80/20 rule to be remarkably accurate.

80% of customers are good, fair and reasonable

20% can be difficult.

And that difficult 20% wants 80% of your time - by way of silly requests, hassle etc.

But they don’t want to pay for it....

We also found that a firm usually achieved 80% of its Turnover from just 20% of its clients.

So we used to ask then the simple question :-

“why are you wasting time on that 20% of your client base that does not pay you much and ignore the 20% that pays well, on time and gives you no hassle?”
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Old 2nd June 2019, 15:00   #14
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Ah, The Pareto principle:

https://en.wikipedia.org/wiki/Pareto_principle

Remarkably accurate across a vast range of things.

Andy
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Old 2nd June 2019, 16:20   #15
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Ah, The Pareto principle:

https://en.wikipedia.org/wiki/Pareto_principle

Remarkably accurate across a vast range of things.

Andy
Yes! - Many thanks Andy

It really is a remarkably accurate “rule of thumb”.
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Old 2nd June 2019, 17:03   #16
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Ah, The Pareto principle:

https://en.wikipedia.org/wiki/Pareto_principle

Remarkably accurate across a vast range of things.

Andy

Except that it does not predict the future. Conversion of just 1 in 8 of the 80% to become one of the old 20% adds 50% to the revenue!
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Old 2nd June 2019, 18:58   #17
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Well shockingly after the email whinge, my bill has been paid in full,even after I offered her a fiver off for coffee breaks.
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Old 2nd June 2019, 19:45   #18
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Except that it does not predict the future. Conversion of just 1 in 8 of the 80% to become one of the old 20% adds 50% to the revenue!
And here we have a post that confirms the 80/20 rule applies here as well
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Old 2nd June 2019, 19:53   #19
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Well shockingly after the email whinge, my bill has been paid in full,even after I offered her a fiver off for coffee breaks.
You still have to ask yourself the question “Is this a customer I want to keep or reject?”

What is the opportunity cost of keeping her/them on your books?

It boils down to “need” - we all need good customers - and I have been more guilty than most at keeping bad ones in the forlorn hope of making them good profitable ones.

Life is too short to waste time on the emotional vampires of the world.

Bin them.
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Old 2nd June 2019, 20:29   #20
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Clive, I have been a self employed trader for almost 30 years now, and I have routed out a few bad payers recently, this one wiill certainly be joining them. There is nearly always a problem, either with my work or the cost of it. The house is for sale anyway, and where she plans to move to, is out of my " territory" anyway. I have blocked her number on my landline, and will do same on mobile if she calls again.
As you and others have said, there are plenty of decent good paying people who would welcome my services, without the need for her.
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