Oh man, that's tragic.
If it's customer supplied work, we address each job differently. But if it's really bad, we will try to talk the client out of using that design and hiring us to design something new.. If they won't budge, we may turn down the job. It just kind of depends.
Now here is where we run into problems. If we do the design work and they want to change our design for the worst. Since we get paid in part before we start doing design work, it's not always easy to say "my way or the highway". So I've got a 3 strike rule. I'll try to push the design in the right direction a few times, but the third time they don't listen to my advice, is strike 3, then I go into "whatever you say" mode. I'll only fight for a design to a certain point until I realize I've been hired to move the mouse pointer around the screen for them and NOT to actually design something for them.
That's Just the Way Its Got To Be!
I had a client come in with some artwork for a sign. I'm all excited now when people bring me "artwork," I'll print whatever crap you have!
Anyway, they were telling me that they wanted something more viable from the road... So I took their print out and walked 5 feet away. They couldn't read it. I explained that what works for print design doesn't always translate well as a large sign. I then suggested they look around at other signs, and see what catches their attention...
The dude called me this morning, said he looked at some other signs, and wants to take all the crap off the sign. literally, it is just going to say "RED TAG SALE" instead of the beautiful collage of hand bags, jewelry, a woman, 6 different fonts, the email address, facebook page, two phone numbers, complete with lens flares, drop shadows, and star bursts.
So just because people give you crap, doesn't mean they can't be convinced otherwise. Actually, I posted about this a few days ago... I asked the higher-up if she thought the design they provided us with was going to be effective, and she actually agreed that it was way too busy, and they changed it to a slightly less obnoxious design. Win / Win!