I have been getting a lot of work in lately and I am going to drop one of my clients.
I have done a huge amount of work for him and invoiced him over a month ago and he has not even paid half of the invoice, I have had to phone him 3 times to ask for payment. This does not bode well for the future!
The paperwork is the worst I have seen - with over half of his sales records missing and the rest incomplete.
He has cancelled his last 2 appointments with me - both by phoning half an hour before hand. The second time because he was still in bed!
As I have more and more coming in I really want to drop this one as he is a nightmare.
Problem is what on earth do I write to him in the letter? I want to say that I cannot afford to work for him as I never know when I'm going to be paid etc and that all paperwork will be returned once I have received full payment.
DOes anyone have a template letter that could be sent to 'sack' a client or any advice on how to word the letter?
Just say that you have reviewed the work involved and it is a lot more than you thought and will need to triple the previously agreed fee. If dont get written agreement with all outstanding amounts paid by the end of the month you will be disengaging acting for him from 1st September.
There are a few ways, it just depends how brave you are. You can tell them that due to changes in your business and the services you offer you are no longer able to work with them, or you could say that due to another client expanding you can no longer offer them the time they need.
You could up their fees as Mark says, but there is always the chance they actually pay it. I suppose you need to think whether you' deep them at a higher rate or not. Even charge for appointments cancelled with less than 24 hours notice.
I contacted a client about two months ago and told him that I was unable to continue giving him additional credit and asked at what point did he stop supplying his non paying clients. I suggested he got his account up to date and then find someone else to do his accounts. He ended up putting £1300 in my bank that day, promised to be a good boy and accepted that my fee would be higher in future. He is still rubbish and still owes me money so I am going to do the same again but this time I shall tell him straight that I will no longer be acting for him. The point being that you do not have to and you should be classifying clients into those who you like, who pay on time and you make a good profit from all the way down to the clients you don't like, who are bad payers and are probably more hassle than they are worth. That latter group you say goodbye to.
Thanks for your advice everyone, I decided to be brave(ish) I sent him an email and told him the truth. Explained that I could no longer afford work for him as I never know when I am going to be and that he has cost me work and money due to last minute cancellation of appointments because he got out of bed late. Told him I would return all paperwork etc once full payment has been received and wished him every success with his business.....bit scared to receive his reply! Feels so much better now that I have done it.
It's always the right move to ditch 'untrainable' clients! You always seem to be getting new clients so you are in the nice position to be able to pick and chose. There's nothing to be worried about, you have politely told him the truth and to be honest he shouldn't be that surprised!
I have only ditched one, he was a nightmare and I put up with him for 2 years, it was 2 years too long and I should have been braver at the time! I have one on my list I've tamed him once and he has fallen off the wagon again so I am waiting to see what happens next. To be fair to him he does always pay but works very haphazardly which I can't work like that.
Get rid of the rubbish I say and onwards and upwards.
