How do you deal with a difficult customer who owes you money?

by Dave Kahle

Question:

How do you deal with a difficult customer who owes you money and constantly draws you out by hanging the money he owes you over your head? This customer also requires three times more service than most of our other customers.

Answer:

It sounds like this customer is taking advantage of you.  I suspect that this is not a profitable customer — you are probably losing money on him.

          Let’s try to sort this out.  First, I’m not sure why you are involved in worrying about the money he owes you.  I believe that a sales person ought to help run interference for the company when it comes to collecting money.  I also believe that a sales person has the responsibility to not sell to accounts that he/she knows are in financial difficulty.

          Having said that, it appears to me, in this situation, that the money he owes you doesn’t sound like a sales issue.  Your company’s management, specifically the credit department, ought to have a series of policies and procedures to address these kinds of issues.  This customer certainly should have some terms within which he is expected to pay, as well as a credit limit.  Those are credit issues, not sales issues. 

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   It’s really pretty simple from your perspective.  If he’s over the credit limit, you can’t sell him.  If he’s under, you can.  It should be pretty black and white.  So, just don’t get into a conversation regarding the money.  Refer it to your company’s financial and credit management. 

          The “three times more service than other customers” is really the issue.  The real question is this:  Is it wise for you to invest that much time in this customer?

          The practical answer has to do with your own personal situation.  If you have extra time and not a lot to do, and the time you invest in this customer is not time that you could be investing in someone else, then it is probably worth it.  Better a difficult customer than no customer.  Better some sales than no sales.

          If, however, the time that you spend with this customer is time that you could be spending with other, more profitable customers ... CLICK HERE TO READ FULL ARTICLE.