Dealing with customers who constantly change their mind
Discussion
I've got a customer at the moment and he's been a bit of pain from the outset, I'm halfway through the job now and he's decided to change his specifications. 3 times. This isn't too bad, because its not past the stage where changing the specification will cause me to re-do any of the work already in place (Bar one cable) But now he's changed the specification the cost (And therefore the price) has naturally gone up - However, he still see's this as an excellent chance to haggle and has contacted me on 3 seperate times today trying to negotiate a lower price. I should point out i'm already doing the job at a discount as it is, If i knock anymore off it's going to eat into my profit and make finishing the job pointless. How do you deal with customers like this? Baring in mind no money has changed hands yet.
I get the original spec documented and signed off on a room by room description.
At the bottom of each room page there is a space for vairances to be detailed with an expected cost.
When these are completed they are signed and dated by the client and installer and then a copy is kept by both parties.
This way we have a full paper trail of changes and chargable costs, whether we take them up or not.
V.
At the bottom of each room page there is a space for vairances to be detailed with an expected cost.
When these are completed they are signed and dated by the client and installer and then a copy is kept by both parties.
This way we have a full paper trail of changes and chargable costs, whether we take them up or not.
V.
VEX said:
I get the original spec documented and signed off on a room by room description.
At the bottom of each room page there is a space for vairances to be detailed with an expected cost.
When these are completed they are signed and dated by the client and installer and then a copy is kept by both parties.
This way we have a full paper trail of changes and chargable costs, whether we take them up or not.
V.
This.At the bottom of each room page there is a space for vairances to be detailed with an expected cost.
When these are completed they are signed and dated by the client and installer and then a copy is kept by both parties.
This way we have a full paper trail of changes and chargable costs, whether we take them up or not.
V.
When you agree what is covered you put in writing what is covered for what. If he agrees, then you start. Your contract is for that.
Then, should they want a change in spec, you can advise if it is more expensive than what was agreed, and the cost will be X.
Then, he has two options. The original spec, or the new spec with new cost. Of course, you can negotiate on the new spec, but at the end of the day your old contract still stands and you have the full right to reject any counter-offer for a change.
From the clients point of view it's a dangerous thing to change spec/design with no regard to cost prior, certainly not something to be in the habit of.
Documenting all the ways is key. I have a client who has a selective memory, and it is unfortunately difficult to get him to document anything...
Documenting all the ways is key. I have a client who has a selective memory, and it is unfortunately difficult to get him to document anything...
You can have all the documents you like, but if the customer doesn't want to pay, or wants more without paying the extra, then there is still a problem and the replies so far don't really address that.
The important thing is not to let the situation deteriorate. Probably the best way forward is to sit down with the client and offer him various ways of achieving the result he wants and attach a price to each of those options. Then hopefully he will choose the cheapest way, which of course you will have set at a point that covers your extra costs, without realising that there was ever likely to be a problem.
If he won't negotiate then I guess you are going to have to remind him that you have an agreement as to the original specification and cost, and that you intend to stick to that unless he wants to pay for the changes. But by then, of course, the situation has deteriorated and unless you want and are able to take him to court you are f
ked.
The important thing is not to let the situation deteriorate. Probably the best way forward is to sit down with the client and offer him various ways of achieving the result he wants and attach a price to each of those options. Then hopefully he will choose the cheapest way, which of course you will have set at a point that covers your extra costs, without realising that there was ever likely to be a problem.
If he won't negotiate then I guess you are going to have to remind him that you have an agreement as to the original specification and cost, and that you intend to stick to that unless he wants to pay for the changes. But by then, of course, the situation has deteriorated and unless you want and are able to take him to court you are f
ked.Try gradually to get all clients around to the way of thinking that they pay for your quality and, whilst you do aim to be cost effective, that you do not compete for business on price. And as above, have all costs agreed in writing. If a customer wants a big change mid way through a big job I give them a quote and advise them of the risks and benefits including change to timescales and tell them that I will stop work until they instruct me which way to go. Maybe if you have a formal process to address changes then the clients will learn that change = necessary delay and possible cost.
Thank you for the replies so far guys, Very helpful. I think my problem at the moment is the paperwork side of things - Being that there is not really any to speak of. Receipts and invoices are provided and thats all. 90% of my work has been small jobs with the occasional 2-3day project so its been more a case of 'what do you want, That'll cost X, Job done, Pay the man.' With no real complications.
Mr AJ said:
Thank you for the replies so far guys, Very helpful. I think my problem at the moment is the paperwork side of things - Being that there is not really any to speak of. Receipts and invoices are provided and thats all. 90% of my work has been small jobs with the occasional 2-3day project so its been more a case of 'what do you want, That'll cost X, Job done, Pay the man.' With no real complications.
It is something you learn from.We go on standard T&Cs for 90% of clients which are really basic. However as soon as these are strayed from, I've learned to always get this documented, even if it is simply replying to an email, agreeing but with stipulations.
A few years ago a great client turned into a bad client - unforeseen.
In around July we were booked for a project and the client asked for a delivery date at the start of December and from this we agreed that work would start at the start of November and stating he must confirm the final spec by Nov 14th.
Work starts as planned and client is very pleased, and tells up so. 15th and 16th November he adds to the spec. To cut a long story short the spec is added and changed right up to about December 3rd, and we move hell and high water to finish ASAP at our additional expense - not billed for.
However, when the client gets the product he realised that it was time sensitive when sales are 50% what he expected. As such not only does he not order the minimum agreed amount, we receive a letter out of the blue demanding ridiculous compensation for the consequential loss as if 100% of the product was sold because of course *our* late delivery. Of course, he makes no mention of how we could have delivered on Dec 1st when he was constantly adding to the spec until the 3rd!
So, sometimes however you aim to please you can't win. In this case the client was reminded of our stipulation about spec and the dates - which we had in writing.
Document everything.
Even if it's as simple as paint woodwork white and walls blue, the cost and the dates.
Changes can then be chargable but you may be able to include them but document them as well (eg wall colour changed to green) and any impact that will have on delivery dates. The more complex things get the more critical the paperwork becomes. How precise you are also depends on what it would cost you to make the changes for example build an engine or build a v8 with twin turbos.
Depends on the industry but we ask for 25% up front, then 2 more payments 1 on completion of build and one on handover/go live.
Even if it's as simple as paint woodwork white and walls blue, the cost and the dates.
Changes can then be chargable but you may be able to include them but document them as well (eg wall colour changed to green) and any impact that will have on delivery dates. The more complex things get the more critical the paperwork becomes. How precise you are also depends on what it would cost you to make the changes for example build an engine or build a v8 with twin turbos.
Depends on the industry but we ask for 25% up front, then 2 more payments 1 on completion of build and one on handover/go live.
Mr AJ said:
Thank you for the replies so far guys, Very helpful. I think my problem at the moment is the paperwork side of things - Being that there is not really any to speak of. Receipts and invoices are provided and thats all. 90% of my work has been small jobs with the occasional 2-3day project so its been more a case of 'what do you want, That'll cost X, Job done, Pay the man.' With no real complications.
In this case do one more bit of paperwork - a quote for each job without fail. If a change is requested, give them a new written quote for the extra work. They will soon get the idea.Mr AJ said:
Thank you for the replies so far guys, Very helpful. I think my problem at the moment is the paperwork side of things - Being that there is not really any to speak of. Receipts and invoices are provided and thats all. 90% of my work has been small jobs with the occasional 2-3day project so its been more a case of 'what do you want, That'll cost X, Job done, Pay the man.' With no real complications.
I see exactly what you are getting at, and I tend to work in a very similar way. If I wrote down (and made the customer sign for) every single aspect of what I was and wasn't going to do, and how much it was going to cost, it would take longer to do that than it would to do the job. Fortunately for me I now charge on an hourly basis and the type of problem you are describing no longer affects me.I have done priced work in the past, however, so I am aware of the problem you are mow experiencing. The problem is called 'a
hole customer syndrome' and affects all of us from time to time. It's bloody annoying when it happens and can be personally hurtful. If I was you I would stand firm with the bloke, hope he sees reason, and if he doesn't then walk away and soon it will be just a bad memory.As for whether everything should be in writing in the future- from what you are describing it doesn't sound worth it, especially as even if it is all covered in ironclad contracts, is someone doesn't want to pay, or wants more for the same money, you will still have a big problem.
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