When you run a small trade business, bad clients are a nightmare - they can drain your resources, cause unnecessary stress, and do a lot of harm to your reputation. Luckily, there are ways to stay out of these difficult situations altogether by identifying client red flags early on and setting clear boundaries. In this article, we'll talk about how to avoid (and say no to) bad customers in your service business.
Recognize Client Red Flags
The first step to avoiding bad customers in your trade business is to recognize the warning signs. Watch out for the following:
- Trash Talking Other Providers: If a potential client badmouths other service providers that you know are legitimate, tread carefully - especially if they complain about more than one business. There is truth in the adage that if someone has a problem with everyone around them, they are likely the problem. Clients like this may be difficult to satisfy and could cause trouble down the road.
- Promises of Future Work: Clients who ask for discounts or deals in exchange for the promise of "lots of work down the road" bring another adage to mind: A bird in the hand is worth two in the bush. You are far better off securing fair compensation for the job at hand than banking on uncertain future projects. If they won't back down on the deal, back away from the job.
- Devaluing Your Work: Watch out for clients who minimize the scope or complexity of a job, such as saying it should "only take about 15 minutes." Unrealistic expectations will lead to customer dissatisfaction, so if you can't set them straight, don't risk it.
- Lack of Respect for Your Time: We all have those days that get away from us, and sometimes a client legitimately needs to reschedule. But if you have a client who habitually reschedules, shows up late, or cancels at the last minute, then they may not value your time, and jobs will lead to lost productivity and frustration.
- Changing Their Minds Constantly: If a client can’t decide what they want or frequently changes their mind, it can lead to scope creep and make it hard to deliver the project on time and within budget. And when they don't have a clear vision of what they want, it's hard to deliver a finished project that will delight them.
- Rude or Insulting Behavior: This one's a given. Disrespectful clients, whether in tone or behavior, are likely to be problematic throughout the project. If they're rude right from the start, they're not going to get any easier to work with.
Set Clear Expectations with Clients
To avoid misunderstandings and potential bad-client situations, you have to be able to establish clear expectations at the start of every job. Here's how:
- Define the Scope of Work: Make sure the client understands exactly what is included in the job and what isn’t. Providing a detailed estimate or work agreement can help clarify these boundaries and prevent scope creep.
- Discuss Timelines and Deadlines: Be clear about your availability and the project timeline. Tell the client upfront if changes to the schedule can't be accommodated, and be transparent about any dependencies for the successful completion of the job.
- Address Differences in Expectations: If the client’s expectations differ from what you can deliver, address these differences immediately and make sure the client understands. Including a section that details what you are not responsible for on an estimate is your best bet if you choose to move forward with the client.
- Include Terms for Additional Work: If a client requests extra work outside the agreed-upon scope, have a process in place for handling these requests. Get written agreement upon an additional charge or a revised timeline before taking on anything extra.
How ServiceM8 Can Help
With ServiceM8 quoting and invoicing software, you can send detailed quotes and job descriptions directly to your clients, even as you're talking to them, right from the mobile app. Job templates and bundling help you clearly outline the scope of work and costs, while the scheduling functionality helps you set realistic timelines.
Additionally, ServiceM8's job history and client notes features allow you to keep track of previous interactions and make sure that all team members are aware of any preferences that might affect the current job. And if a prospect or client is particularly toxic, you can apply a "blacklisted" badge to the client's record to let everyone on the team know not to engage with them any further.
Establish Strong Boundaries
Maintaining professional boundaries is a must-have skill for tradies in avoiding unhappy client situations. Use these strategies:
- Stick to Your Rates: Don’t be tempted to lower your rates because a client is insisting that a job should be cheaper, or that other providers can do it for less. Know the value of your time and your skill, and don't let a pushy client talk you into accepting anything less than fair compensation for it.
- Limit Flexibility: While it's fine to be accommodating to some degree (and actually a good idea, from a customer service perspective!), don't allow clients to dictate unreasonable terms or timelines. Clients need to respect your schedule and resources.
- Don't Tolerate Disrespect (Ever!): If a client is rude or disrespectful, walk away. Your business environment should be one where your employees feel valued and respected, and a toxic client can undermine that.
How ServiceM8 Can Help
With ServiceM8’s scheduling and dispatching tools, you can efficiently manage your team’s time and avoid overcommitting to demanding clients. The software allows you to allocate specific time slots for jobs and provides automated reminders to both you and your clients, helping to reduce the likelihood of missed appointments and last-minute cancellations.
Master the Art of Saying No Gracefully
When dealing with difficult clients, it's important to know how to say no in a way that doesn't give them a reason to complain. Take the following examples and imagine how you could use them in your business:
- Be Honest and Transparent: If a project isn’t within your scope, or you don’t have the capacity to take it on, it’s better to be upfront. Explain your reasoning clearly but diplomatically, emphasizing that you want to ensure the client gets the best possible service.
“I appreciate your interest in our services, but at this time, our schedule is fully booked. I wouldn’t want to compromise on the quality of work we deliver by overcommitting.”
- Offer Alternatives: Whenever possible, suggest alternative solutions. This could include referring the client to another reliable provider, offering a different service that you can accommodate, or suggesting a later date when you might be available.
- Tip: Have a list of competitors handy all times, and know their areas of specialty. If you send a job their way that is a good fit to their services offering, it doesn't do you any harm, and it may keep you in the prospect's good books.
“Unfortunately, we’re not able to take on this project right now, but I can recommend Frank's Plumbing, who specializes in this area and does excellent work.”
- Frame It as a Benefit: Position your refusal in a way that highlights how it’s in the client’s best interest. This can soften the blow and help them understand your decision.
“I think to get the timing you've laid out, you'd be better off working with someone who has more immediate availability. I’d hate for you to experience delays with your project. I can give you the names of some other reputable providers if you'd like.”
- Keep the Door Open: If you have to say no because you know you won't be able to meet expectations, you may want to leave the door open for future opportunities. Show them that even though the current request isn't a fit, you value the relationship and are open to working together down the line.
"Although I can't help you with this particular project, I would love to stay in touch for future opportunities that might be a better fit."
Offer Rewards to Good Clients
While avoiding bad clients is important, on the flip side, it's good to recognize the great clients. Here are a couple suggestions to foster positive relationships:
- Prioritize Long-Term Relationships: Clients who have a history of timely payments, clear communication, and respect for your business should be prioritized. As much as possible, keep these valuable assets to your business happy.
- Offer Loyalty Rates: If you have a client who consistently pays on time, communicates well, and is pleasant to work with, consider offering them a slightly better "VIP" or "loyalty" rate if it's feasible. Trimming profit margins slightly for predictability and a positive working relationship can be beneficial in the long run.
How ServiceM8 Can Help
ServiceM8’s client management features allow you to track customer history, including payment timeliness and communications. This data can be invaluable when deciding which clients might deserve a discount or priority service. Additionally, you can use ServiceM8’s automated follow-up tools to stay in touch with your best clients, reinforcing positive relationships.
Trust Your Instincts
Finally, trust your instincts. If something feels off about a potential client, feel confident in your decision to pass on the opportunity. Bad clients can cost more in time, stress, and resources than they’re worth. Focus on building relationships with clients who respect your work, value your time, and are willing to pay fairly for the services you provide.
By recognizing red flags, setting clear expectations, maintaining boundaries, and rewarding good clients—with the help of ServiceM8—you can keep your work focused on a strong, loyal customer base. Remember, it’s better to turn down a problematic client than to deal with the headaches they might cause later on.
If you're ready to boost productivity and profitability in your trade or service business, check out ServiceM8 today.
