High cost customers

The 20-80 rule. 20% of customers take 80% of the time in a bad way.



We demand schedules. People shape up real fast when they lose the ability to call impromptu.



"I have a quick question."



"No problem, how does Thursday at 10:00am work for you?"



This exchange a few times followed by prompt billing will end the cycle. People are more receptive to it than you think. It's just a power play by most people to get your time. Take back the power, provide great service on time, but on your time.

Whether you charge clients based on the project (fixed rate) or the time (billable hours), there are pitfalls either way.



On project fees, here's my take. Anytime the client knows there is only one charge for your time, regardless of usage, he or she will have an "all-you-can-eat" mentality.



I'm not trying to be negative here, but we all do it. I do it. My family does it. Everyone does it. The same can be said of clients who hog your time. They know they are only going to pay one fee, no matter how many times they call you, unless you carefully define your terms (billable vs. non-billable hours) in more detail at the onset.



Remember, your rates can always be a hybrid of fixed vs. hourly fees. You can agree to charge a fixed amount up to a certain number of client hours. Anything beyond what is reasonable would be billed at your hourly rate. Keep in mind -- this could be tracking work for you, so look into a software program that makes it painless to track billable hours.



The good news? Good customers understand when you remind them that you budgeted a certain number of hours to a project, in order to meet your other business obligations. Your project rates should always define what you consider to be a reasonable amount of time for completing any given project. Anything else is "beyond the scope of the original bid." Remember that phrase -- "beyond the scope..."



You may find that some of your customers or clients are resistant to this change in your billing practices. Give it time. Everyone knows that businesses constantly evolve and that's what you are doing...you can explain that you are trying to meet their needs as well. By dragging out projects long beyond their expected timeline, your client delays his bottom line -- whatever that may be.



Finally, you can always decide that it's time to "upgrade" your client base. It's perfectly okay, as your business grows and you prefer to work with certain types of businesses, to refer certain clients elsewhere, to a business collague who can better serve their needs. And, worst case scenario? You can always "fire" a customer. But it probably won't get to that.



~ Kim

Post a NOTE in front of their face.

"Nothing personal, but if your appointment goes over your scheduled time, then my fee is $____ per hour."



And if they felt, they have not seen it, then say

"Okay, your hourly billing will start in 10 mintues"



If nothing else works, then charge them their NEW RATE.