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Don’t Nickel and Dime Your Clients

Jan
16
2018
Don’t Nickel and Dime Your Clients

Clients are the lifeblood of your business, and the truth is that acquiring and retaining enough of them to keep your revenue streams flowing can be tough work. As you well know, it may require a good deal of time and money to develop business relationships that lead to profitable accounts.

Savvy business owners know their clients are worth thousands or tens of thousands of dollars each year. Factor in the lifetime value of loyal, dependable clients and that number grows massively.

It makes no sense, therefore, to “nickel and dime” your client base.

A savvy client will always know what you are billing them for. When you send an invoice for a significant amount of money, attention to the smaller line item charges becomes more acute. Miscellaneous add-ons can undermine a business relationship even if those expenses were agreed upon in the original proposal or quote. Rather than make these additional expenses a potential point of contention, consider these three alternatives:

  • Build smaller miscellaneous expenses into the total fee you charge for your services. Photocopies, local travel, phone time and meals are all “add-ons” that can lead to client dissatisfaction, especially when the invoice amount is four or more figures.
  • Include miscellaneous expenses on your timesheet / invoices but indicate they are being provided at no charge to the client
  • When a client asks that you sit in on a meeting for one hour, indicate it on your timesheet / invoice but provide the time at no charge to the client

Client retention is one key to success. A good way of hindering your ability to retain clients is to nickel and dime them for inconsequential sums of money. Being thought of as a “cheapskate” may initiate a client to look elsewhere for the work that you provide.

Ask yourself: How much did it cost to bring in this client? Is it “worth it” to lose them for mere fractions of their total business to you? In most cases, the answer is no.

 

For further discussion or comments, please contact Gail L. Trugman Nikol, President Unique Business Solutions, gail@ubsassociates.com or call (516) 935‑5641.

By admin January 16, 2018