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Seven Reasons to Say No to New Business (Part 2)
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The customer does not treat you in a courteous or professional manner. Profitable business is based on strong relationships between you and your customer. This doesn't mean your customer has to be your best friend, but in essence your best customers will be those who respect and value your professionalism. Anybody who constantly questions your recommendations, nit-picks at your pricing, or questions your credibility or judgment, is not interested in developing a long term relationship with your business. There is no opportunity for trust here. Your business is being viewed as a commodity and the customer is clearly showing they do not value your business or want to establish a long-term relationship.
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The customer asks for products or services you don't provide.
There are times when someone will approach your business for products and services you already provide and will also request additional products or services you don't already provide. They value your relationship and ask you if you would be willing to venture out into new opportunities. If this new opportunity is a stretch on your capital resources or your existing operational structure, or it is not congruent with the mission of your company, it is best to decline this business. Before you instantly accept a new challenge and opportunity make sure it will not stretch your resources and develop into more headaches than successes for your company.
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The customer's requests are too large for your operation.
If a company approaches you to provide something that stretches beyond your current capabilities to produce, consider the cost to expand your operations versus the profit potential. Take into account any new capital expenditures, additional employees, training expenses, material costs, and the opportunity costs of other business lost while you are meeting the needs of this new customer. Controlled growth for your company is more manageable and typically more profitable than a large increase in business within a short time frame if you are not currently set up to manage that quick growth.
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The customer does not share the same values as you.
The right customer for you is someone who shares your values. It will be very apparent by the manner in which the customer treats you if you share common values. Don't lose sight of your company's mission and values even if it means turning down potential business. When you compromise your values to pick up new business it will not result in profitable business for your company in the long run.
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Source: Debbie Bermont is president of Source Communications, a marketing consulting firm. Debbie is a leading expert on helping businesses reduce their marketing costs and accelerating their sales growth.
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