During a recession, you will likely find out who your good and loyal clients are. When times are tough, many people’s true colors show through that never reared their ugly heads when everything was peachy. These are what we would call “fair weather clients.”
An associate told me a story about how her business is struggling in the slowing economy. At times, she had to dole out partial (or no) payments to her vendors. Each time she did not make full payment, she called the affected vendors to explain the situation and ask for their patience.
Each time, she paid the vendors in full after a few months. One vendor, however, took the drastic step of suing my friend’s business. This was despite her continued communication, honesting and desire to negotiate. The case is currently in mediation, and you can be that my friend will take every opportunity to steer people clear of the business that is suing her. The law suit is pushing my friend’s business close to the brink of demise.
Another business refused to offer my friend a 10 day grace period to pay an invoice, despite the $80k my friend’s business had already paid them this year. Amazed at their lack of cooperation, she went online and immediately was able to find another vendor who not only was less expensive but would provide free delivery. Because of their inability to accommodate my friend’s small request, they lost their biggest customer in the State of Florida.
The bottom line is that we’re all suffering right now, and it has a dominoe effect. When our customers can’t pay us or if business is slow, we can’t pay our vendors and the cycle continues. If you can at all accommodate your loyal customers, they will forever remember your generosity and professionalism with continues business. If you abandon them in their time of need, you will likely lose their business and all potential future referrals you would’ve gotten from them. Some day business will pick up, and folks will remember who took care of them when times were tough.
