9 Reasons you should keep cheap clients for your business
As a business owner, you are always looking for ways to bring in more clients and grow your business. But what if you could grow your business by keeping some cheap clients? When building a business it’s hard to determine a good customer from a cheap customer, the good customers are more likely to be persuaded by your competitors and the cheap ones keep asking for lower prices, so how does one build a business this way? When others may say drop that customer or that customer is not worth it, I say keep that customer, It may sound counterintuitive, but here are 10 reasons why you should keep some cheap clients for your business.
1. They ain’t leaving
One thing about having cheap clients is that they have already been around the market, They tested new companies, and new vendors and you probably landed on that customer now, You can’t come into this customers business and expect them to change their ways now, I mean even if you lay down the cost of products literally showing them how much you paid for it they just don’t care! With my business when I had cheap customers I decided to try to build a relationship with them, not a friendship but a business relationship where they enjoyed buying from me, that didn’t stop them from squeezing me for every penny but it kept them with me for years and years…
2. Great reviews
As my business was new I didn’t have many customers and my google reviews were pretty empty, I had a couple of good customers, cheap customers, and low-order clients, I didn’t want to bother my big customers so I didn’t ask them to leave a review only if they did voluntary, but my cheap customers I asked all of them one by one, and their reviews were pretty awesome!
If you are not making enough profit from these customers Another way to try and benefit from cheap customers is by asking for referrals, these referrals can be anyone from next door business or even friends and family, hopefully, this method can make you compensate some of your loses that you are experiencing.
4. Raises your business gross sales
One thing we can all agree on is that losing a customer is bad for business, I mean am I right? Put it this way, say you own a food distribution business and in year one your business grossed about $650k now that 650k didn’t come from certain clients it came from ALL types of clients, if you said you know what I don’t want these cheap clients I will find better customers, so you got rid of these 4 clients but now what will happen is your weekly sales will drop, here’s an example of these four clients were averaging weekly orders from you of $1000 a week that’s four thousand a week which is $192 thousand a year, your sales now may drop dramatically.
4 Benefits of having higher gross sales:
- Business loans
- Better deals
- Sell your business for a higher price
- Higher more employees
5. It Can harm your reviews
To tell cheap clients to go buy from someone else is risky, I highly don’t recommend it, I always suggest to my friends and business colleagues when they bring this topic up to me is exit the relationship the same way you entered it, you started with them happy leave happy, don’t piss them off because we are living in a world where reviews are everything!
6. Better than no customer
Beggars can be choosers, In business, you gotta be humble if the customers only want to be cheap but are paying on time and giving you business I think you should accept it, a customer is better than no customers when I started my first I was getting the customers that no one wanted and yea they were somewhat cheap but I accepted it I made a little profit and I still have some of them up to this day, so no complaints about me.
7. Just Keep it business
As you all know the saying business is business! Don’t get on a personal level with your customers or discuss politics, these are red flags when conducting business, even then your best customers will start to consider you not serious and will then start bargaining with you because you just made them your buddy…so make a sell and keep it moving!
8. They can buy elsewhere
“One person’s trash is another person’s treasure” If you drop a customer because they are not making you enough profit that customer will find someone else, it’s a choice of do you want to do business with them or not.
9. They may sell one day
I had a customer and that customer was ordering items from me, his orders were consistent but he always asked me to give him a free item or lower the price and I tried to keep going because I need the business, fast forward 2 years later I walked into the business to take their order and there was a new guy inside introducing themselves telling they now own the business…yes I adjusted my prices to my original prices, sometimes patience is the key!
So, what are the benefits of keeping cheap clients? First and foremost, it’s important to remember that every business should have a mix of clients – some who are more profitable than others. Cheap clients can help you offset the costs of doing business with higher-paying customers. They also offer an opportunity for businesses to learn new skills and test out marketing strategies without risking too much financially. Additionally, working with challenging clients can make you better at your job and increase your resilience.
if you enjoyed this article you should check out what to expect when starting a business