Every business has problem clients, but not everyone subscribes to the “customer is always right” philosophy. In fact, some businesses will actually fire difficult clients and report being happier and more successful for it.

CPA firms are often told to be strategic in prospecting for and selecting clients to help dodge such dysfunctional relationships — even when money is tight and all clients look like gems. That’s easier said than done,
of course.

Experience shows that a difficult client can be more problem than profit.

Author and accountant Wayne M. Davies suggests the following strategies and tactics: “Do not focus on the lost revenue that results from firing a bad customer. Focus on the resulting reduced stress and the simple fact that you’ll feel so much better knowing that you won’t have to deal with this jerk any more … You end up spending so much time and energy putting out the fires they cause, do you really make money on them when you factor in the value of your time?”

A problem client may not be easy to spot at first glance. But here are a few signs that can quickly help you determine when it’s time to cut the cord:

• Your client is very quick to chisel down the price and, upon receiving the invoice, questions every detail. And, to top it off, they never pay the invoice on time.
• Your client is very demanding and plagues you with constant e-mails, phone calls and office visits. Perhaps they even invade your personal time with after-hours or weekend phone calls.
• Your client is a chronic complainer and perhaps even exhibits aggressive or abusive behavior.
• Your client is always late to meetings, cancels meetings at the last minute or even fails to show up.

Deciding to fire a client is one thing but actually doing it is another. One of the biggest hurdles can be figuring out what to say. It might help to sit down beforehand and write a couple of different scripts. It may even help to stand in front of a mirror and rehearse what to say. When the time has come to confront the client, it is important to remain calm and polite.

Keep it short. Keep it businesslike. Don’t stray from the script or the task at hand. You don’t want to say too much or get off course.

Raise your rates, even if only for that particular client. Because, as a general rule, the client who pays the least will expect the most, raising your rates will likely prompt the bargain shopper to move on.

If a client wants your home phone number and calls you after hours or on weekends, that’s a sign you have a problem client on your hands. A more graceful way out of such a predicament is not to field any calls from this client — unless it’s a true emergency — when you are not available.

If you do happen to end up in a conversation with this person outside of normal business hours, stop the client firmly, but politely, and suggest picking up the call the next business day, and then do so. If this continues to be a problem, let the client know you are hiking your rates.

These are just a few suggestions that may prove helpful, but the ideal scenario is, of course, to avoid such situations in the first place.

That’s why you need a crystal-clear profile of your target client. Then be ruthless about accepting no less.

HOW TO FIRE A CLIENT: Join the conversation. Take the survey. Get the answers.

COMMENTS: Questions, rants or raves? Write Rick Telberg.

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