There’s no doubt about it; occasionally the customer is not always right, and indeed a few should be sacrificed because their demands are more debilitating than their custom is worth. Small businesses need to be especially aware of the cost to keep some customers satisfied when they have no intention of ever being satisfied with any of their suppliers. Some people are so focused on their advantage that they will push for every last penny, regardless of what that means to the supplier.
A good business deal in one in which the players feel has been good for all parties, and these rarely result in bad feelings. It’s a different story when a single client’s unreasonable demands start to affect the level of service provided to other customers. A company can be so determined to please the customer that it looses sight of the insidious cost implied. A really belligerent customer can divert scarce resource away from total business development and growth, before it dawns that a specific client is sucking it dry, and that there is no up side to continuing the relationship.
Customer service representatives see it as their job to keep the customer happy, and it is difficult to accept that they can’t always do that. Companies rarely draw a policy line to prevent getting into no win situations, but that’s what eventually has to happen in certain cases. It should not be surprising that the unsatisfied client has that same relationship with most of its suppliers, and asking around can help justify the decision to terminate the relationship.
There are cases when the customer actually needs a product more than the supplier realizes, and sometimes awkward clients realize they’ve crossed the line. Relations can be renegotiated going forward to everyone’s satisfaction.
A company, especially a small one, should be careful not to be too reliant on a few customers, especially large ones that can inordinately skew the business strategy. If the strategy is to grow broadly, dependence on one client can jeopardize profits and increase vulnerability. It is difficult to resist a significant client, but a small company must understand the implications of sleeping with an large angry bear.
The customer is always right, except when he’s wrong. Wise managers understand this, and that it’s often better to cut bait and fish in another lake, for the sake of corporate integrity and opportunity.