When You Should Say No – 3 Reasons to Fire a Client

We recently sent out a question to the LinkedIn crowd, asking when it’s okay, or even necessary, to say no to a client or prospect.

He got a good response, too.

A quick cross-section of answers from an extraordinary group of individuals follows (but read the thread to see who said what and to get everyone’s full explanations).

After reading all the replies, we thought we’d highlight the most compelling.

3 Reasons to Fire Your Customer

It’s OK to say no to a client:

1. When You Would Be Comprising Legal & Ethical Standards

Douglas Marlow said: “It’s okay to say no in a situation where you may be breaking the law, taking a bribe, paying a bribe, compromising your own morals or religious beliefs, or where it will embarrass or hurt the feelings of another.”

2. When You Would Be Compromising Quality Standards

Kelly Karius said: “When time doesn’t permit for you to do a proper job for them.” We thought this was a tremendous addition to the conversation. It was echoed by Len Mastrapa, who said: “When he/she requests from you what you know right off the bat you cannot & will not deliver…”

3. When The Deal Would Not Be Win-Win

Both Gerry Mann and Kevin Harville brought this one up. Excellent point. If you can’t look a client in the eye as a peer on a professional level, you should feel comfortable opting out, without begging for the business.

Gerry specifically said: “If the deal isn’t a win for both sides, then it’s better to say no deal and walk away.” While Kevin stated: “It is OK to say no, politely and professionally, whenever the relationship is not mutually beneficial. But it is better to look for a way to say yes that is mutually beneficial.”

The question did bring up some opinions that differed. For example, Chaitanya Kumar offered a technique that allows you to say no, without saying no: “Avoid saying NO. I don’t care what business you are in. You must say ‘What I can do is…’. If you have to go above and beyond tell them the cost of it. That means, ‘I can do it but it has a higher cost…’

And Dave Stein adds another reason to stay in – even though your instincts may tell you to say no, to fire your customer or prospect and to get out of the deal: “For example, let’s say you’re in late. You find out you’re just in there so the company can meet the requirements of having three vendors and it appears the incumbent will be selected. You still may want to stay in the deal to learn more about your other competitor–or to keep them busy so they are distracted from another deal where you are competing against them.”

In our opinion, there are plenty of times when it’s okay to say no to a client or to go as far as firing a customer or prospect. It may be an ethical crossroads, or an invitation to failure, or when the relationship is one-sided to your detriment. The takeaway for you? Be clear about what is unprofitable business for you in terms that aren’t just financial. There are relationships that can be unprofitable emotionally or ethically as well. Know your limitations to stay on track in your career.

Reasons to fire a customer? Do you agree with the ones we listed? What are your rules for saying no?