Gambling on Customers: Know When to Hold ‘Em

Know When to Hold ‘Em

“You’ve got to know when to hold ‘em

Know when to fold ‘em

Know when to walk away

And know when to run”

With credit to Kenny Rogers, who resembles my friend Frank Hurtte—I believe they once shared the same barber—I think of Kenny’s song “The Gambler” when faced with potential clients or customers that raise a red flag. 

Parents, teachers, and mentors have likely told you to trust your gut. Sometimes it’s better to collect data and use it in combination with your gut instinct. Either way, when you are staring at a potential problem customer and your gut is raising the red warning flag, don’t ignore it. There are some folks out there that are simply not a good fit for you or your organization. Let’s unpack those various hands you might be dealt.

1.) High-Maintenance Mike:  Mike is not a good ole’ boy, Mike is a demanding toddler. He wants his part numbers and bin numbers on all his packages, he wants same-day delivery, he wants extended payment terms, a dedicated inside salesperson on-site, and all at the cheapest possible price. If Mike ever grows up and realizes those extras come at a cost, he might be worth doing business with.

2.) Indecisive Ike: Ike cannot make up his mind. One week he wants aluminum conduit, the next week it’s PVC, and the following week it’s RGC—all for the same project. He juggles vendors like a pretty girl at the county fair juggles suitors and is a lot less fun to be around. You spend a lot of time and energy courting Ike and often walk away empty-handed, with no purchase order in sight. 

3.) Unfocussed Ellie: Ellie is the kissin’ cousin of Ike. She chases one enticing project or idea after another, never settling down to focus or committing to a business model, customer segment, or vendor strategy. Maybe she doesn’t know what she doesn’t know. Maybe she doesn’t know what she wants. The end result is the same:  she wastes your time and never commits to a plan of action. You get the feeling that she wants you to make the strategic decisions, do the work, and bring her business much like a prize cow wants a ribbon at the county fair.

4.) Slow-Pay Sal:  Sal drags her feet and when she does finally pay you, takes the cash discount and only returns your phone calls when she wants something, like those “emergency” circuit breakers she took 120 days to pay for. She’ll keep coming back to your well for water as long as you allow it.

5.) It’s not you, it’s your business model Mel. Sometimes, it is just not a good fit. The saddle is better suited to a different horse. Maybe Mel is a great drinking buddy and fellow card shark, but the business models don’t align. It could be he’s a contractor house, looking for six inventory turns per year and your skill set is high-tech, value-added quality products. It might be fine to go the square dance once in a blue moon with Mel, but it will never be a long-term, sustained partnership. Face the facts and don’t waste your time, or his. 

6.) Some other behaviors exhibited by red-flag customers are:

a. Customers who milk you for information but never buy—Snoopy Sam

b. Customers who ONLY buy from you when your price is the lowest—Skinflint Sue

c. Customers who place zero value on the services you provide—Obtuse Otto

d. Customers who constantly attempt scope creep, aka adding work to an already quoted and accepted project—Greedy Gus

e. Customers who don’t live by agreed-upon terms and conditions—Ethically-challenged Ed

There are plenty of other examples out there, but “if you’re gonna play the game, boy, you gotta learn to play it right.”  Understand the importance of spending your time and energy where it matters most—on those customers who value what you sell. No seller will ever reach their full potential until they learn to say no.

“The secret to survivin’

Is knowin’ what to throw away

And knowin’ what to keep”

Throw away those losing hands, er, customers, and focus on the winning ones. That will ensure YOU win the Pot!

Interesting Note: Kenny Rogers made the song famous in 1978, but the song was written by David Schmitz in 1976. It was an homage to his father who gave his son advice and had died two years prior. 

Desiree Grace is an advisor, consultant, and mentor with 30+ years as a senior leader in the electrical distribution and manufacturing sectors. Desiree leads and supports special projects for River Heights
Consulting. She builds brands, grows revenue and motivates teams, facilitates strategy and execution, and offers special expertise in helping international companies enter the North American market.  Experience with Fortune 100 companies, private start-ups, and mid-market businesses enables Desiree to help a variety of B2B organizations improve market share, revenue, and profits. She is a sought-after speaker for topics such as professional development, sales leadership, industry trends, and team leadership and motivation. You can connect with her at www.linkedin.com/in/desireecgrace.

...