Cheap Customers

[JMPrinting]

I have a larger customer who is a nice guy, always pay on time but must always beat me up on pricing. I quoted him for about 180 sq ft of cut vinyl and install around $6.00 sq ft which is low as it is and said that was too much. Also expects to get 2.5x10 ft hemmed, stitched and reflective banners for $75.00 each...he throws up how much money he's spent (which to some of you is nothing) he even said "for that large lettering job I know you don't have but $175 in vinyl. Yea well I'm not in businesses to break even...I have to type it up, cut, weed, tape, load it up, drive 15 minutes, unpack, prep, install, cleanup, drive back...

just venting...

 

[StopSignGraphics]

Some customers aren't worth the hassle....If you aren't making a profit or at least the money you need/want would you be better spending your time and resources on a better paying customer. It's an easy trap to fall into especially if they pay on time.

~Chris

 

[artbot]

between cheap customers that know exactly what they want vs "price is no object" but take forever to sign off on a project, i'll take the cheap one.

 

[JMPrinting]

Make him an offer. You'll give him $175 so he can go out and buy the vinyl, hand cut it, and install it himself.

If he can't get it done with $175 worth of vinyl then he pays double your original quote.

Nice guy or not, this guy sounds like a tool. You don't go to a dentist and complain that they're only using $4 worth of fluoride.

Sounds like a good deal. Or I can sell him an old cutter I have here for a couple hundred bucks, I'll give him the vinyl for free as long as I can record him going through the entire process of buying a program up to cleaning up the job

 

[Jeff]

"I have a larger customer who is a nice guy"...Are you afraid he's going to sit on you?

Cheap customers are more the norm these days than ever. I just fired a very long time customer that required the "best" all the time and paid for it!

Lately he wanted the best but only wanted to pay what his cheap buddies are paying for from sign hacks. I'm not interested in racing the other guys to being the cheapest around...I told him it was time we parted ways. Let him get a taste of cheapness.

Jeff

 

[Kottwitz-Graphics]

So why don't you anticipate the customer, and "pad" the bill, and when it comes time to invoice him give him a 10% "good customer" discount. Come out the same, but make him think that he is getting a deal with out having to negotiate for it...

I have found that pricing is a game. You want the most, customers want to pay the least. If you can make them think they are getting a deal, everyone is happy.

 

[nikdoobs]

So why don't you anticipate the customer, and "pad" the bill, and when it comes time to invoice him give him a 10% "good customer" discount. Come out the same, but make him think that he is getting a deal with out having to negotiate for it...

I have found that pricing is a game. You want the most, customers want to pay the least. If you can make them think they are getting a deal, everyone is happy.

^This^

 

[JMPrinting]

between cheap customers that know exactly what they want vs "price is no object" but take forever to sign off on a project, i'll take the cheap one.

I will agree, and customers who want it "right away" you send them a proof and then they get back to you in 2 weeks

 

[TheSnowman]

I have done well at sending these people to other shops over the years. They weren't worth the hassle. There's a guy around the corner now who got into business by calling current existing shops main customers, and just saying "tell me their price and I'll beat it"...but he'll also screw you if he's given the chance. I send everyone that has the "bottom feeder" mentality over to him. Makes my life a lot easier now.

One thing I found help, spend some time on your showroom and displays. I get the comment "you guys sure make some nice stuff" a lot...and if that wasn't out there, I wouldn't have work that can speak for itself when I'm explaining why they're paying me more. I'm worth it. I can make their image/brand way better than the guy that's just doing them "faster" and nothing else to help the guy accomplish their main goal with the sign.

 

[thesignexpert]

...You don't go to a dentist and complain that they're only using $4 worth of fluoride.

Hahaha! +1


We had the same type of client for years... always wanted to bust my chops on prices, always trying to drive it down, always trying to justify his incessant requests on "all the work I've sent you"... argh. I reached my limit when I was forced to raise prices after absorbing multiple increases from 3M and then was told in a snotty tone that I should be happy for his business because of "all the money I've made over the years". Yep, because giving him cut-rate, one-of-a-kind pricing at barely existing margins was making me a TON of money.

Of course you all know that selling a million bucks worth of prints is EXACTLY the same as just putting a million dollars in your pocket. Right?

 

[CanuckSigns]

We have a customer who is eastern european, everything is price, price, price. He's threatened to take his business elsewhere, he still comes back, I think it's because everyone else has told him to pound sand.

I just have to anticipate it and pad the bill out a bit, so i can give him a discount. It's a cultural thing, in his home country everyone complains about the price of everything, even a $0.50 can of coke will be bartered with.

 

[binki]

We have had to read the riot act to some of our customers and a sometimes fire them. Almost without fail they come back, apologize, acquiesce and we then have a good relationship.

Once the customer has an understanding the same as yours it can be a beautiful thing.

 

[neil_se]

We've done the same in firing bad customers, you've just got to have the confidence that your time is better spent helping someone worthwhile.

My BDM usually deals with these types of customers and is great at phrasing our position. Something to the effect of "for a relationship to exist between our businesses it needs to be a win-win proposition. We're happy to provide great service and quality products, what we expect in return is to be treated with respect and compensated fairly. If we can't have a relationship that's beneficial to both of us then I feel it would be best to shake hands and part ways without hard feelings."

 

[Craig Sjoquist]

overprice those customers & let them argue the price to both of your liking or move on to next customer.

 

[screener24242]

they aren't only paying for the products, they are paying for your knowledge on how to produce it. don't sell your knowledge for cheap. stand your ground on price, work smarter, not harder.

 

[Z SIGNS]

Ask a lawyer why his bill is so high.

After all that 3 page contract he wrote for you only cost him 3 sheets of paper and the price of postage.

Ask an architect to design you something for free because if you like it you will do business with him.

The list could go on but I'm sure you see my point.

I have no time or tolerance for this kind of customer.
We refer them to the local hacks so they can all squabble over doing his work for the lowest price.

Be professional,stand your ground, and you will attract professional clients.
Be a hack and you will attract the cheap clients


Cheap customers get shown this..Quickly very quickly

 

[TimToad]

I was brought up in this industry when this old adage was prevalent and it can be applied to any business: "Three things go into a sign, price, quality and deadline. The customer picks two, you get the third."

Any way you work the combinations, it works and protects your business from a lifetime of playing catch up. Those that try to think they can outrun giving the customer all three and ignore their overhead and quality of life, eventually run themselves out of business.

I just got a call from a mega-mega multi-millionaire who owns one of the largest vineyards in our area. They are opening a restaurant at the vineyard and want some extra signage on what is easily a mile long frontage of their property. As I started running out some cost effective options to him, he shared that his marketing director had ordered a couple of banners from Staples, even though we had done other work for them. The Staples banners had disintegrated into shreds by the high winds that prevail in the area shortly after installation.

He stopped me short and abruptly said, let's not waste valuable time on run of the mill options, we've been down the cheap route, we called you because of the fallacy in the cheap route thinking.

Moral of the story, only you can choose how you want the vast majority of your customers to perceive your expertise level. The one's that make you want to take a shower after dealing with them are better left to others with less self-respect.

 

[copythat]

Old famous words I started to use "No Mas"

I have placed all my accounts on either 50% down 50% on completion or Pay up front! I charge more now and love when I get those that I can go online for less. Had a guy wanting a 3' x 8' banner. He needed by Sat. He was in Tuesday. I told him no problem. Price is $153.80. He says...wait you can't charge that much, Vista only charges $39. I told him to order from them. Replies but it will take them two weeks & I need it Sat. I said that's not my problem. He cursed me out and said at those prices you will be out of business.

In conclusion. I stopped giving out credit. These internet morons that bastardized our industry, ask for payment up front. Whether the job came out right or not. They get paid! And doing very well. My biggest account that would pay me 45 - 60 to 120 days have now been put on the 50-50 plan. Their orders requiring a lot of handling and not internet capable, so it takes a lot to do. They will have to seek another service that is willing to carry them and put up with 1-2 day turnovers. Their comeback was that I am strangling their cash flow. LMF( Y )O
P.S. They are good for $40-50k a year. I do not want to give anyone terms, other than pay as yo go. My bank account looks great! Just a little vent!



Sign Up!

 

[TyrantDesigner]

Cheap customers come, cheap customers go. I have 'customers' come in that want to get some 'sick' art for their shirt/sign/toilet/whatever ... but when I tell them I only offer 15 minutes of free design time and what they are looking at is atleast an hour or two of me sketching and redrawing that stupid flying pig that is propelled by his own farts ... they look at me like I'm insane to tell them I will have to charge them for the time it takes to draw that asinine malarkey ... and off they go ... still have that jack *** coming into my shop every few months seeing if I won't charge him to draw that stupid pig.

And that is just for the artwork. I get a few that tell me I'm too expensive ... I then tell them you get cheap price, fast turn around or good quality not all three ... I then ask them what two they will want for their vehicle graphics they need done this afternoon ... they go with good quality and fast turn around every time.