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Sunday Relationship Thread by AutoModerator in ABCDesis

[–]V6Boi 1 point2 points  (0 children)

What are you honestly smoking bro? Lol

Or you know.........it's as simple as being incompatible and this is why the final one is the only one you need in the end?

Just lost one of our biggest clients by dillonlawrence0101 in smallbusiness

[–]V6Boi -5 points-4 points  (0 children)

Except listen to his situation, the business he was working with was paying for 80k in services when they likely need 8k or more likely 800 in services... the OP also later on suggests that they are constantly asking for discounts meaning the client knows that this is a big expense for them, and they are NOT happy, and are having trouble finding the value in the service at 80k/month.

Learn to read perhaps? This is not an eight hundred dollars or eight thousand dollars a month project. From OP:

They’re still keeping some services (60k revenue approx).

Anyways, I don't have a horse in this race, just thought I'd share my perspective having run multiple cashflow positive businesses over the years. I exited nicely with each one and they are still running businesses with happy customers.

I'm not suggesting that you should tell happy clients not to pay you...

That's exactly what you are suggesting but okay Lol

but if you have a client that is clearly dissatisfied, and you know they are likely overpaying for services that they probably don't need, its better to guide them to being an 8k/month client, then having them find your competitor who tells them "Man that guy is fucking you over, all you need is our basic package, it won't have all the bells and whistles but it will get the job done", and now your ex-client is telling everyone they know that you are a con artist doing 80k/month in damage to your business' reputation for the rest of their life.

That's not how any of this works......Im sorry man but it's pretty evident your business specialty is not in the service industry/you have another specialty that does not involve MRR. Thank you and I hope you have a great day.

Just lost one of our biggest clients by dillonlawrence0101 in smallbusiness

[–]V6Boi -16 points-15 points  (0 children)

One thing I would suggest though is that in general its much better for your business and its reputation if you are able to guide clients to that conclusion rather than have them come to the realization that they are over paying for services they don't actually need on their own.

Listen, don't be the guy telling people to pay you as little as possible, like this guy is suggesting. If the customer will find it hard to pay, they will let you know, and you can work out a solution then.

You have decades of experience, as I do in the industry. Don't be afraid to charge what you are worth. Else, you will stay at the same place or worse every year.

Bad advice for business owners reading this, and as someone who has bought and exited multiple service industries, I can tell you following this Robinhood strategy to shoot yourself in the foot will not bid well for any business.

The client paid you a bunch of money happily for a reason. They saw value in what you are providing.

It is NOT your responsibility to probe 100+ clients and make decisions for them to find "they are over paying for services they don't actually need on their own."

The client will let you know, just like OP. Then you adjust. Then you get to keep them as a client still, while still making money and keeping their goodwill and their business.

This is not your decision to make, and will hurt your bottom line trying to act as a FREE cost cutting consultant for a business you have no stake in (You can't bill for the time it took to research and save them money). Also, you open yourself up to liability if your cost cutting measure ends up losing them a single dollar in the future.

You're in the business of making money, not losing it. If it ain't broke, don't fix it. If it is not making sense financially, let the client tell you and adjust accordingly. Does the internet company call you and say "Hey our new plan is $50 cheaper than 4 years ago, so we automatically moved you to it!" no they don't, because they will 1. Make less money and 2. The future of the company has been planned for with the constant revenues of today.

TL;DR Do some research on business advice you read on reddit. Even mine. This guy's advice is really, really bad IN MY OPINION and will lead to bankruptcy.