Why is it important to choose your clients carefully?

It is an old belief that Customer is God and for an entrepreneur just starting out, it can be very tough getting their first few clients and then some more. In such times of uncertainty it’s quite easy to start treating every potential client as VIP. However putting in more or less than what you are being paid for, has its own disadvantages. So, is it important to choose your clients carefully? Let’s see.

It’s quite tempting to add tremendous and as much as possible value even for clients who are paying very less than the fair value. They often come with the promise of more future business or at least references. However more often than not, these future businesses and references come with the same expectations. And they often expect tremendous value at very low costs as delivered in earlier services.

Criteria for selecting clients

Before deciding to finalize a deal, always consider two criteria – Pay against Value – and always tip the scale towards value, just a little. Know that the pay is the amount you actually receive from the client. Value is what you deliver to the client in return. Tipping the Scale a little towards value earns you the respect of the clients and their network, whereas doing anything different not only eats into your current profits but also future growth. Another factor which people ignore in such behavior is that it destroys the money vs value equation of your industry.

Its obvious that the clients who pay you well against your time & resources invested should be your first priority. They are the ones who not only value your work but also are willing to put they money for what its worth. Never ever take these clients for granted and give them the VIP treatment.

Those who pay you well, but do not value what you deliver, can actually damage your reputation. For them you are charging them extra and are over priced. As every one knows nothing should be overpriced.

Caution

However, you need to be over cautious of people/clients, who say that they value your work, but who add little to your bank account or any other value. Its better to keep such clients away from your business. Know that if your are good at what you do, people should be willing to pay you for that.

A careful selection of your clients ensures that you set the right expectations for you and what you deliver. Good products & services should always come at the prices they deserve.

So, is it important to choose your clients carefully? The answer should always be YES.

Feeling like putting some pressure on your sales team? Read this article on the topic before you do.

SenseNxt Blog would be a good blog to follow on GPS Tracking systems and how it can help your organization