Good vs. Bad customers?

As a rule of thumb is it better to have no customer than a bad
customer? My definition of a bad customer would be one who:

1) Does not pay bills
2) Likely to sue
3) Use your product/service in illegal or ways detrimental to society

Is it worth your time to sense out customers first before having them
sign a contract ? It seems a little common sense would go a long way in
saving expensive legal fees! What do you think?

Thx!

<el_roachmeister@yahoo.com> wrote in message
news:d0am0s0eia@enews1.newsguy.com...
>
> As a rule of thumb is it better to have no customer than a bad
> customer? My definition of a bad customer would be one who:
>
> 1) Does not pay bills
> 2) Likely to sue
> 3) Use your product/service in illegal or ways detrimental to society
>
> Is it worth your time to sense out customers first before having them
> sign a contract ? It seems a little common sense would go a long way in
> saving expensive legal fees! What do you think?

Absolutely, trust your gut reaction with this sort of thing.

--
Robert Anderson

In article <d0am0s0eia@enews1.newsguy.com>, el_roachmeister@yahoo.com
wrote:

> As a rule of thumb is it better to have no customer than a bad
> customer? My definition of a bad customer would be one who:
>
> 1) Does not pay bills
> 2) Likely to sue
> 3) Use your product/service in illegal or ways detrimental to society
>
> Is it worth your time to sense out customers first before having them
> sign a contract ? It seems a little common sense would go a long way in
> saving expensive legal fees! What do you think?

If a customer is bad, why do you expect them to respect a
contract?

In the real world, you sell to anyone who is able to buy
your product. A non-paying customer is one who you have
not screen properly, and is most likely an issue with your
internal credit department, not the customer.

Some companies do analyze the profitability of each customer.
Some go so far as to "fire" customers. I find that a bad move
since companies come and go, but people stay around for a
career. If might think you are firing a customer, but really,
you are slamming a person. That person might get a new job
at your best customer, and then take their business elsewhere.
Treat everyone with respect.

What you can do, however, is control the use of your time.
Invest more of your time in the more profitable accounts,
and spend less of your time with the less profitable
customers. Re-evaluate as buying patterns change.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

"John A. Weeks III" <john@johnweeks.com> wrote in message
news:d0b5tb01d4g@enews4.newsguy.com...
>
> In article <d0am0s0eia@enews1.newsguy.com>, el_roachmeister@yahoo.com
> wrote:
>
>> As a rule of thumb is it better to have no customer than a bad
>> customer? My definition of a bad customer would be one who:
>>
>> 1) Does not pay bills
>> 2) Likely to sue
>> 3) Use your product/service in illegal or ways detrimental to society
>>
>> Is it worth your time to sense out customers first before having them
>> sign a contract ? It seems a little common sense would go a long way in
>> saving expensive legal fees! What do you think?
>
> If a customer is bad, why do you expect them to respect a
> contract?

My understanding of the question -- and I could be wrong -- was is it okay
to outright reject a customer if you feel they are a bad risk? That is, is
it okay to refuse ot sign a contract with a customer with whom you feel
uncomfortable. My reaction: it is definately okay to not take on a customer,
especially if your gut tells you that they are a weasal. I believe that we
have gut feelings about people for a reason and that these initial feelings
are often right.

--
Robert Anderson

A lot of this depends on the situation as well. If you are selling a
widget, regardless of the acutaly price of the widget, just so long as
your price it correctly you can probably figure out a way to make it
work (COD, etc.).

On the other hand, if your selling an onging service (I'm thinking
enterprise software consulting), it may not be worth it regardless of
the potential lucre. No matter how much you charge, it won't be enough
to deal with the potential liabilities (lawsuit for damages to computer
infrasturctre, etc.).

A slightly analagous situation, although not perfect, is that of
physicians. Although the concept of "firing a patient" has been around
for decades -- for items such as non-complaince, inability to pay bills
or work out arrangemetns, and other reasons, most physicians have maybe
fired a handful of patients in their career -- usually for issues such
as being abusive or gross non-compliance. The recent stories of some
physicans refusing to take malpractice attorney's as patients also shows
a bit of this type of fire customer thought process in the real world.

Daniel Rubin

Robert Anderson wrote:
> "John A. Weeks III" <john@johnweeks.com> wrote in message
> news:d0b5tb01d4g@enews4.newsguy.com...
>
>>In article <d0am0s0eia@enews1.newsguy.com>, el_roachmeister@yahoo.com
>>wrote:
>>
>>
>>>As a rule of thumb is it better to have no customer than a bad
>>>customer? My definition of a bad customer would be one who:
>>>
>>>1) Does not pay bills
>>>2) Likely to sue
>>>3) Use your product/service in illegal or ways detrimental to society
>>>
>>>Is it worth your time to sense out customers first before having them
>>>sign a contract ? It seems a little common sense would go a long way in
>>>saving expensive legal fees! What do you think?
>>
>>If a customer is bad, why do you expect them to respect a
>>contract?
>
>
> My understanding of the question -- and I could be wrong -- was is it okay
> to outright reject a customer if you feel they are a bad risk? That is, is
> it okay to refuse ot sign a contract with a customer with whom you feel
> uncomfortable. My reaction: it is definately okay to not take on a customer,
> especially if your gut tells you that they are a weasal. I believe that we
> have gut feelings about people for a reason and that these initial feelings
> are often right.
>