Any business person will tell you, and I’m no exception, that a satisfied customer means repeat business, referrals and a great reputation for your business. That’s why we all say customer satisfaction comes first. Still, there are times when you have to turn a customer down. Though it’s the exception, rather than the rule, it does happen. Following are four scenarios when you are better off turning a customer down.
When your resources are strainedSometimes, especially when you first start your business, your resources are strained. Say you own a lawn mowing service. You own five mowers and have five employees running the machines. You’re booked solid for the month ahead. Then you get a call from the manager of landscaping at a local university saying he’s got a machine down and could you send someone over tomorrow afternoon to cut lawn. You know the university generally does its own mowing and rarely hires contractors. Clearly, it would make no sense to use your credit card to buy another mower just to help the university out, especially when you are certain you won’t be getting any repeat business from this customer on a regular basis. No, this is one time when you have turn the customer down.
When your efficiency will suffer
Of course, in the foregoing scenario, you might consider shuffling some work around to fit the university into your schedule. Perhaps customer X, scheduled for the end of the month, wouldn’t mind if you push his/her lawn cutting into the first week of the following month. No, no. Don’t even consider going there. You need to provide outstanding service to the customers who are scheduled and counting on you to be there for them. Again, you have no alternative but to turn the university down.
When the customer is far from your service area
Or let’s say that university is located in a community located 60 miles from your business, but your service area extends only to the large community in which your business is located. Given the cost of gasoline, it wouldn’t be profitable to make an exception to your business plan and transport your mower 60 miles down the road for a one-time gig. Again, it’s a situation that calls for you to turn the customer down.
When the customer doesn’t fit your target customer
I don’t mean to pick on universities! Clearly, you might need to turn down any type of customer for the foregoing reasons, or sometimes just because the business or organization contacting your green industry business doesn’t fit your target customer. Perhaps you are an irrigation business providing service to suburban homes. You aren’t equipped to do business with the agricultural sector. So when a customer from that sector comes calling, you have no option but to turn the customer down.
As you can see, there are times when even though you’d love to take on more business, it just isn’t in your best interest to do so. Stay the course. Focus on the customer base that fits your target market and you will be capable of providing excellent service every time you do business with them. By developing a reputation as an expert in your field, you’ll draw even more business to you that fits your target market.
And when you have adequate resources and can be efficient, you will have happy customers who are satisfied with your work. They’ll contract with you again and again and refer you to their friends and associates. This is the way to build a profitable green industry business and a great reputation.
Check out our latest eBook for tips on how to grow your business in the offseason!