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Strategy

How to Fire a Client

The day has finally come. Here’s how to handle it with aplomb.

1. Don’t Look Back
After speaking with your team and coming to an agreement that the client needs to go (and also taking a look at your contract with them to make sure you’re not breaching it), stand firm in your decision to cut them loose. Make your case plain, and don’t give them room to try to convince you otherwise. Since it might be an emotional conversation, come prepared with a script with the reasons why and next steps for both parties, and practice it so you’re not tempted to deviate from the matter at hand.

Man on the phone

2. Decide on the Best Method
Depending on the client, determine how best to deliver the message. A video conference or phone call is ideal for voice-to-voice communication and there’s less likelihood of something being misconstrued, while email leaves a message trail in case there’s any misunderstanding about what’s been agreed to. If another person or rep works closely with the client, talk it over with them to figure out what would work best in the situation.

3. Figure Out What to Say
If their treatment of you and your company has been egregious (like verbally abusing you and the staff, for example), tell them straight out that their behavior is unacceptable and you won’t be tolerating it anymore. If it’s more of a growing misalignment (like demands for lower prices and lengthening payment terms), tell them your team is changing directions and focusing on different niches moving forward. If they push back, stick to your guns.

4. Suggest a Friendly Competitor
Consider letting them go and giving them the name of a competitor who might be able to serve them better. You’re free of the client, the competitor gains a customer and the client is served better in the end. It’s a win-win-win. If it truly was a misalignment, don’t burn bridges. They might have a referral or two for you in the future that would serve you well.

5. Reiterate Your Decision
If they come back asking for another chance, restate what you’ve said and don’t elaborate too much or give them room to make their case. If there’s one person at the company who was the problem and he or she has since left the company, it might be worth it to hear them out. Otherwise, be very cautious and be careful of what you agree to. You don’t want to find yourself in an identical situation a year after you had to fire them.