Operations

Strengthen Your Company By Firing Unreasonable Clients

Posted on April 1, 1998 by Tom Mazza, Contributing Editor

Strengthen your company and improve that all-important bottom line by occasionally firing unreasonable clients. Some entrepreneurs believe if you overwhelm a client, even an unreasonable client, with a fantastic product and great service, he or she will eventually come around. I disagree.

The key to running a successful limousine service is to establish a system. There has to be an accepted practice of executing everything, from answering the phone to placing the client’s luggage in the vestibule of his or her home. Some business owners say that they cater specifically to the wants and needs of each individual client. If this is your business philosophy, you are limiting your growth potential, as well as driving your employees crazy.

Let’s assume your gross profit is $32 on an airport transfer. Your goal should be about 150 airport trips per month, or approximately five per day. The current company system says your chauffeur must be at the client’s home 10 minutes early for drop-offs and at the baggage claim equipped with a sign for pickups.

Your chauffeurs are well trained and follow a strict dress code. Company vehicles are checked and re-checked to ensure quality. The phone is answered by a staff person from 6:00 a.m. to 10:00 p.m. every day. Payment is immediate by cash, check, or credit card, or net 30 days for corporate accounts. More than 95 percent of your clients are comfortable with this system.

Nonetheless, what happens when a select few clients consistently create havoc with your system? A small percentage of your monthly trips may be stressing every person in your organization. These clients insist upon forcing drivers to race unsafely to the airport. They refuse to immediately book their return trips. Instead, they call while their plane is en route. You’re forced to juggle the activities of your entire staff for one client.

Further, these difficult clients call at midnight screaming to make reservations. They are consistently rude to your staff. Finally, they are always delinquent with payments.

Well, you are better off firing this small percentage of clients. Work hard to replace them with clients who will appreciate your staff’s exemplary service.

The $32 profit you realize on the airport trip is fair and reasonable if the client is safely tucked into your system. However, once he or she deviates from your system, the $32 is not worth the aggravation. This small percentage of your business monopolizes a disproportionate amount of your time and prevents your company from growth. Those clients also hurt the morale of your staff and disrupt the 95 percent of the clients who deserve your attention.

A company grows by integrating good clients and quality employees into a sound system. If you focus attention on the 95 percent of your clients that can be satisfied, you will discover how quickly your company can grow.


View comments or post a comment on this story. (0 Comments)

More News

PAX Training Launches App For Chauffeurs

The global provider now enables each user to access educational and company info via iOS or Android devices at any time.

Go Riteway Celebrates 60 Years In Bus Business

The Wisconsin company started with just four school buses and now has 1,000 vehicles serving several ground transportation sectors.

Colorado Operator Buys Affiliate To Widen Service Region

eNews Exclusive: B-Line Express in Vail will now cover even more ground in the retail-heavy state.

Why Uber Can't Be Fixed And Must Be Shut Down

Analysis: The TNC's lower costs brought lower prices, with resulting popularity and growth. But its use of noncommercial cars was unlawful from the start.

Empire CLS Featured In Meetings + Events Magazine

The article describes the chauffeured transportation provider's newest additions to its fleet: 56-passenger motorcoaches.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - July 2017 $12.95 COVER STORY: * Why These Titans Work So Hard to Give it Away * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close