Knowing When You Should Fire a Client

I've been in the flooring trade for over 30 years, starting with my enrollment in an apprentice program at Washburn Trade School in Chicago. I learned many different aspects of the trade working for contractors in the metro area, and for the past 16 years I have run my own business. Since I was a trainee, I have been taught and I believed that the customer is always right. And that makes sense; I wouldn't have work if I didn't have any customers. One of the lessons that has taken me the longest to learn, however, is that sometimes the customer is not right: Sometimes you have to fire the client.

The lesson is so challenging because it goes against the basic concept of being in business. It's saying "you're fired" to someone who wants to give you money in exchange for what you love to do. But sometimes, it's the smartest business decision you can make.

For example, my shop did work for an area builder and developer. It was straightforward new construction involving 500 to 800 square feet of nail-down strip in maple, red oak or white oak in a natural grade with a clear-coat finish. The jobs provided regular work for us, and we all know how repeat work is valuable for any business. I justified it as regular low-profit-margin work. As my business grew, I became more aware of the business side of my company. I began to realize this "regular low-profit-margin work" was actually costing my company money. Instead of lining our pockets with extra cash, we were losing dollars. But I was still very hesitant to turn this client away—it was regular work! But, trying to make the best business decision, I knew that I was better off having the crew stay at home than working for less than my actual costs. Actually, by freeing our schedule of this regular, straight-lay, nail-down work, we were then free to accept higher-end work with better profit margins.

Recently we got involved with another general contractor. We did the first job at a negotiated rate. With the prospect of repeat work, we agreed to a second job at a negotiated rate. It was another standard strip maple floor installed in a rectangular remodeled kitchen. Simple. We were told that the job site would be "broom ready." When we delivered our maple so it would have time for acclimation, we were reassured that the job site would be ready for us in the coming days.

When we arrived to start the installation, however, there was construction adhesive running the length of our new install. There were underlayment staples left behind, and at one end of the space the subfloor dropped more than 1½ inch over 5 feet. The contractor said that since we were the flooring contractor, this was our problem, not his responsibility.

In business, I believe all things are negotiable and that when in disagreement, you keep the discussion going until all parties are informed and in agreement. I explained that if we went over the irregular subfloor he left, the flooring we laid wouldn't fit properly. The floor would not be flat and it would create a faulty finished product. The general contractor responded by saying if he had known we were going to be "that particular" about the subfloor, he would have used "that presealed flooring" and put it down himself. He went on to say that if we knew our work well enough, we could sand the high spots on the new floor and fake a flat surface. Standing there in the home, I discussed our options with the contractor. He dared me to walk off the job as he himself walked out the front door—of his own job.

Obstructions and challenges are placed in front of us so we have the opportunity to become more experienced and wiser. The contractor left me with two choices that day: one, to walk off the job site, or two, absorb the cost of the prep work needed to deliver a quality floor and live with my bruised ego. If I walked off the job, I would have to load the flooring back into the truck and return it to the vendor at a restock charge of 20 percent. The homeowner would have to live with this delay in her kitchen remodeling project—only 10 days before Christmas—while the GC and I worked out our disagreement. If I absorbed the cost, I knew I could deliver the high-quality work associated with my company's name.

The project was completed, with a few more minor obstacles. My crew held their heads high. I know that we delivered a professionally installed, sanded and finished wood floor the homeowner will appreciate for many years. I also know that we will never do work for that general contractor again.

As I continue to learn my way through this business, I try to monitor my emotions, allowing clear-headed thinking to direct my decisions. The customer is not always right, but he is always the customer. As a businessperson, value your customers; as a professional craftsman, enjoy your work and earn the money you deserve.

 

 

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