How to Classify Your Clients
Not all clients are equal.
Hey, everybody I’m Steve with DYB coach here to share with you our client classification.
We classify them into four categories.
The first category is the “A” Clients.
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A Clients are awesome! They don’t mind paying retail, they value the service & the experience you provide, and they are always a pleasure to work with.
“B” Clients are also awesome except they just need a little discount, they just need a little break.
But instead of giving them a discount, you add value into your proposal.
So what that might mean is, instead of giving them a $100 off just say, “well, I’ll tell you what, if you sign today I’ll include the ceiling. Another thing there too is you trade.
You don’t just give anything away. Just trade, that way you get to close the sale on the spot.
So maybe if they want a garage door or if it’s a larger project, soften up the proportion but add a little value into it instead of discounting your price.
And that will make those B’s happy and B’s are a pleasure to work with.
They just need that little something. So give it, add some value in instead of giving a discount because you value your service.
Next are “C” Clients.
C’s need a little bit more than a little discount. They need something like 10% to 20% off.
That’s not okay.
You should never give your services away at 10% to 20% off because after it is all said and done you are not going to be making any money.
And you cannot build a business not making any money and you are going to struggle with the cash flow.
You are going to have cash flow crisis and sleepless nights trying to make payroll wondering how you are going to make payroll. So don’t do that, don’t give away 10% or 20%, refer these guys away.
Lastly, we have “D” clients.
D clients are completely unreasonable. They don’t respect you, your time, or the service you provide.
They are a hassle to work with, they are constantly bothering you, complaining and usually don’t pay on time.
And if they pay at all they take a long time to pay.
So you don’t want to work for those clients at all, even just starting off.
Now what you will do is once you get going you are going to have more towards the bottom than you do at the top.
As you go you want to pre-qualify these guys so that you find that you are only working for A and B clients.
And in fact, you want to work for all their friends too. And that’s why step nine in the DYB system is so important so that you stay top of mind to them.
And that means connecting on social media, on Facebook with them.
Sending them cards every quarter, and calling them up once in a while.
And just say, “hey, Mrs. Jones you came to mind, just want to call and wish you a great day.”
That goes a long way because with A and B clients we want relationships and for those customers to become clients.
We want an on-going relationship with them.
So quick recap,
“A” clients are awesome and pay your price, many times they are no can’t bids.
B’s are also awesome they just need a little bit of a deal. But instead of a discount we are going to add value.
C’s need 10 or 20% discounts, no bueno.
And then D’s are just completely unreasonable through and through.
Run from those guys, refer them away, or just say no.
Get to the point where you are only working for A’s and B’s. Make sure you stay top of mind to them.
Take care of them super well.
Remember it’s all about the experience. Provide them with an excellent experience, they will continue to refer you to their friends and life will be good.
You will break 1 million peacefully and profitably and that’ s awesome!