Question

Topic: Customer Behavior

When Is Enough

Posted by Blaine Wilkerson on 9/18/2004 at 2:49 PM ET 1000 Points
I have a long term client who has placed me in an interesting predicament.

To make a long story short, I have been contracted to design, build and manage a website, including marketing consultation. The client pays me a monthly retainer, pays on time, and we have a very good personal and working relationship.

However, literally 2-days to 2 hours prior to the launch of the website, the client makes last minute decisions regarding launch date, navigation, and the most frustrating change: DESIGN.

I am now working on the 6th design. Every previous design was approved and praised with comments such as "You captured my vision PERFECTLY...YES, YES, YES....I am VERY pleased, GOOD JOB!!... PERFECT...Excellent!!!" , etc. Yet every time, without fail, just before the launch (and after countless hours of re-design, coding, etc), I get an email either delaying or expediating the launch because he changed his mind AGAIN.

Now, the first 4-5 times, I said nothing, and just went with it. I'm afraid this "spoiled" him into thinking he could take my time for granted. We speak on a daily basis as colleagues and friends...discussing various issues regarding the project as well as getting to know one another on a personal level.

The last time this happened (yesterday), I sent him an email stating the last minute changes have to stop. The contract states "unlimited alterations to the final design", not "I will make as many websites as you want". He has replied from the stance of a "consumer" stating:

" Blaine, I also recongize that I have made many changes to the site. BUt that is my right. Please do not make me feel as if I'm not a client, a customer, because that is what I am. I'm paying for this regardless if it is at a discount, and dedicating alot to make this successful. You make it sound like you're the only one working on this."

I gave him a considerable discount based on the promise of sending several clients my way. So far, none of them have committed. The primary reason is due to the fact they want to see what I do for this client first, BUT the client keeps delaying everything!! And when I confront him on the issue, he resorts to the "I am a consumer, I am paying you, you areed to the discount so it's not my fault, it's my site, I have the right to change it if I want, etc."

There is an escape clause in which I am seriously considering activation and notice. I don't want to "fire" this guy, but his inexperience, constant delays, and his "switching to South-Paw" in order to play the victimized consumer when I try to "re-educate" him on the damage he is doing to his business and our relationship by these relentless, last minute changes are wearing me thin.

His revenue and potential evangelism is somewhat significant to my company. So, the dilemma is:

Do I loose the headache and move on? Or do I continue to be patient in order to maintain the stability in revenue and client base?

This is very similar to the problem many employers face with regards to keeping a valuable long-term employee who has an attitude, versus starting over from scratch with another employee with a good attitude, but less capable.
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RESPONSES

  • Posted by telemoxie on 9/18/2004 at 3:47 PM Accepted
    We all have problem clients, at least, it's the right kind of problem to have. I don't charge for change orders or delays, and it sometimes puts me in a bad situation.

    If this were my client, I would stop. I would take a deep breath. Then, I would try to put in writing exactly, specifically what the client wanted me to do. I would say, "Yes, you are my client, that is why I want to be sure I understand EXACTLY what you want." I would revisit the client's requirements in excruciating detail, and I would provide a detailed schedule of dates, AND I WOULD INCLUDE A FUTURE DATE FOR THE CLIENT TO MAKE ADDITIONAL COMMENTS OR SUGGESTIONS. If I had not provided detailed plan with dates before, I would appologise for that shortcomming. I would also explain that these projects need ongoing work, and I might even include in my schedule a "budgetary placeholder" - a future date or budget amount for a future Statement of Work, or estimates for ongoing maintenance. I would probably not ask the client to sign the document, but I would modify the document based on the understanding, and I would send a copy to the client.

    I would then follow the plan. On the specified date, I would ask the client for any additional changes or requirements. I would remind the client that this is the date for comments, per our schedule, and that any future revisions could be handled in a future Statement of Work. If the person is like every client I know, the client might possibly have some minor changes on the specified date, but the client ABSOLUTELY WITHOUT FAIL will ask you to make a minor change after the date, just to show you who is boss, and you need to make that minor change without comment, as before.

    You need to keep your eye on the ball - in this case, that is the future statement of work which you have not sold yet - the next big step in your relationship...

    ... and you need to be prepared to walk away from the deal. Before you do any significant negotiating, do enough personal marketing so that you truly are not in a position to need this client. In the movie Jerry McGuire, the little boy said, "Did you know that dogs and bees can smell fear?". So can clients. Don't be frustrated. Be confident, be organized, and above all, act in the best interest of your friend and client.
  • Posted by Deremiah *CPE on 9/18/2004 at 4:18 PM Accepted
    Jett,

    It takes compassion and a strong work ethic to do what you have done so far. If you need my help you know where to reach me...(I feel ya! bruther). Pleasing your customer has been done here without question. What you might want to try to do is implement a new strategy. Based on his design, desire and committment as a client inform him that you will provide him with what he needs. If your actions have been based off of a verbal conversation put the communication you have had with him in writing. Request him to make any necessary changes to your outlined objective and forward it back to you. Give him a couple of days and then ask if he believes he is satisfied with the strategic plan you and him discussed. If he is satisfied please make the desired changes. Ask the client if he liked the changes. Please remind the client that it is your desired goal to meet his needs (totally). Wait and see what happens.

    I would not cut the client off at this particular moment but I would try as much as possible to identify the clients issues as it relates to what he does not like about your solution. Your client needs to be more honest with you about his objectives and you must find a way to go deeper with your clients needs. He sounds as if he is apprenhensive and afraid. Between you and me, you must establish some future point you will not go beyond (unless the client has some very expensive photographs of you in a safety deposit box somewhere in Switzerland). Is there anything else I can do for you?

    Your Servant, Deremiah, *CPE (Customer Passion Evangelist)
  • Posted by Peter (henna gaijin) on 9/18/2004 at 5:15 PM Accepted
    You said you are on a retainer. Does that mean that after this launch is done, the amount of work you will need to do for them will be much lower (or o they have other significant work planned)? If not much, it might be worth sticking it out in the hopes that you get into maintenance mode, where the payment more than covers the amount of work you do in that month.

    It may also be worth renogotiating the contract - in particular putting in something about the amount of work (maximum number of hours per month) which is covered by the basic retainer, and then what happens when you exceed that. BVe nice to word it in such a way that they don't make a game of getting exactly the number of hours you listed out of you each month - it is supposed to be a maximum.
  • Posted by Blaine Wilkerson on 9/18/2004 at 6:01 PM Author
    Thanks Everyone. At this point, I am still listening and absorbing comments/advice.

    Peter - Yes, there is a potential for increased monthly maintainence and informal promises of "paying you (me) what you deserve once the site starts making money". Of course, with each delay, we get farther from success, and as Amanda has stated, it is beginning to evolve into a brand liability.

    He is telling all of his associates about me, then they keep asking why his site isn't up. He knows it is his fault, but I wonder what he is telling them.

    Like I said, I am in listening mode right now. Let's see if everyone else seems to fall on the same page.

    Thanks again!
  • Posted by Pepper Blue on 9/18/2004 at 6:32 PM Accepted
    Blaine,

    Suggestion: What has worked for me is that I have had tell my more demanding and time abusing customers that because my business is constantly growing I need to start running projects on more of a structured project timeline in order to make everybody happy. This means a 3 day minimum turnaround. (so you do it in 2) This is a natural evolution of growing a business. He is not your only customer, and he needs to know this, and every additional hour you put into him presents a lost billing hour with another customer or worse yet, lost opportunity marketing your own business.

    This stuff will kill either you (yep, I mean mortality) or your business - if you let it keep going.

    As Amanda says, if they value you they will come back and appreciate you more. Just remember to rewrite the contract at this point.

    In the future I would change your contract wording (that is if they all a state "unlimited alterations to the final design") to state 2 revisions, so 3 total.

    If you can't hit it by then, odds are it isn't going to happen without a serious sit-down meeting to visually go over it and determine why and where you are going to go from here.

    The architecture and design industry has been doing it this way for years, otherwise you can imagine the revisions they would get caught up in, buildings would never get built.

    I also agree with Peter about making clear the maximum amount of hours per month.

    Bad customers will abuse you, they smell fear and your need for references and income, and they try leverage this along the entire cycle of the relationship. Always trying to get more and more for less and less.

    Qoute him this from General Patton:

    "A good plan executed violently today is better than a perfect plan executed tomorrow".

    I hope that helps.
  • Posted by SRyan ;] on 9/18/2004 at 6:37 PM Accepted
    Blaine, maybe you can play the Versioning card.

    Tell him that this website is Version 1.0, ready for launch. All websites get tweaked, updated, revamped, and so forth... but he's got to pull the trigger and start watching the metrics before making further changes.

    I like comparing software/web development to a car. We can keep repainting it and relocating the cupholders, but until we take it on the road, we'll never know if it's drivable. Or if any passengers want to go for a ride.

    If he's asking (again) for pre-launch changes, as you say, help him to document those in the spec for site Version 1.1 or 2.0. Start planning THAT process with a tighter agreement, too. Some of his ideas or requests might be implemented in phased versions, according to the priority you both place on them.

    Definitely a tough situation! Good luck...

    Shelley
  • Posted by Deremiah *CPE on 9/18/2004 at 10:20 PM Accepted
    Jett,

    you've received some gRRreat advice from our KHE Experts. Shelley really throws a nice idea out there (Go Shelley).

    STEP BACK...
    One thing I would suggest you do is take a step back.

    SEE IT FROM YOUR CUSTOMERS VANISH POINT
    try to perceive your relationship from the clients stand point. This always helps us to center ourselves before we "SNAP" as we say in the hood.

    WHAT IS YOUR CUSTOMER SAYING
    You should be concerned about what your client says especially what they might say to others.

    But at this point you might be "Beyond Pissed Off" and this is what happens when we have been "Pissed ON'.

    LIFE's A SELF-FULFILLING PROPHECY
    Well my friend just remember life is a self-fulfilling prophecy. Do you think you have it in you to begin once more without taking offence to the previous lack of considerations you may be feeling from your customer? If you can you have a lot of Rudyard Kiplings "IF" poem in you (read below)

    ----------------------------------------------------------------------------
    IF.....
    ----------------------------------------------------------------------------

    IF you can keep your head when all about you
    Are losing theirs and blaming it on you,
    If you can trust yourself when all men doubt you,
    But make allowance for their doubting too;
    If you can wait and not be tired by waiting,
    Or being lied about, don't deal in lies,
    Or being hated, don't give way to hating,
    And yet don't look too good, nor talk too wise:
    If you can dream - and not make dreams your master;
    If you can think - and not make thoughts your aim;
    If you can meet with Triumph and Disaster
    And treat those two impostors just the same;
    If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools,
    Or watch the things you gave your life to, broken,
    And stoop and build 'em up with worn-out tools:

    If you can make one heap of all your winnings
    And risk it on one turn of pitch-and-toss,
    And lose, and start again at your beginnings
    And never breathe a word about your loss;
    If you can force your heart and nerve and sinew
    To serve your turn long after they are gone,
    And so hold on when there is nothing in you
    Except the Will which says to them: 'Hold on!'

    If you can talk with crowds and keep your virtue,
    ' Or walk with Kings - nor lose the common touch,
    if neither foes nor loving friends can hurt you,
    If all men count with you, but none too much;
    If you can fill the unforgiving minute
    With sixty seconds' worth of distance run,
    Yours is the Earth and everything that's in it,
    And - which is more - you'll be a Man, my son!

    By Rudyard Kipling, www.kipling.org.uk/kip_fra.htm

    Is there anything else I can do for you?

    Your Servant, Deremiah, *CPE, (Customer Passion Evangelist)




  • Posted by Blaine Wilkerson on 9/18/2004 at 11:55 PM Author
    I really don't know why the client keeps changing his mind. Like I stated above, he responds to my final designs with great enthusiasm...then a few weeks later, at the last minute, tells me he wants to go for a "new look" and refers me to some website he stumbled upon.

    Sometimes he say he wants natural, eaeth-tones...a holistic feel, I spend weeks on the design, he says he loves it, then right before launch, he decides he wants to change it to blue hues and steel...something hip and techno, I create it, he loves it, then at the last minute, he wants it to be grungy, street signs, asphalt, concrete, etc...soo I change it, he loves it, then he wants less buttons...I alter the navigation, then...you guessed it...he wants to go with different colors, move the logo, change the font, add a background, create a splash intro, etc....it never ends.

    And he has the nerve to ask me "When do you think you can get it done because I want to throw a party?".

    When I explain to him how the constant delays create a domino effect in my schedule, clients, etc (as Tim described), I get a professional response, that ALWAYS includes a comment about him being a consumer and having the right to change it if he wants and ends the email with a subtle statement like "...I hope we can continue to work together on this", or "...perhaps we need to revisit the contract if you feel we cannot work together..".

    About 6 weeks ago, I called his bluff by giving him notice of contract termination...he scrambled, apologized, offered a bonus, etc. I accepted and guess what...he did "it" again.

    I kinda feel like I am telling you all about a girl who keeps cheating on me and asking you why and what to do. LOL. The answers are obvious.

    Why? - Because you let her get away with it.
    What to do? - Run away as fast as you can!!!

    Unfortunately, this "girlfriend" brings in revenue.

    But, as Tim stated, he is not my only client. I can afford to let him go, but feel like I have invested too much time and effort. If I can find a replacement soon (tchan?), I may break it off and see if he decides to come back in a month or two after discovering there are not many people out there who will do what I do for him. Then I can lock-up a tighter contract.

    Fear. Funny. Financially, I don't need him. I have made statements about revenue etc, but this is only from a standpoint of business sense. I would rather repair and move forward than junk a project. But I am not afraid to push the ejector button...it won't close me down or anything. I want to finish this damn site and get on with it. He seems to think he is paying me to do whatever he wants me to...kinda like an employee.

    The funny thing is that since there has yet to be a final product, he has neither hurt nor helped my company in anyway! Actually, he is sucking up valuable time and causing frustration. A good example is this post...I could have done a lot of work for someone in the past 7 hours, but I have to resolve this.

    Maybe I can present him with a new contract/amendment stating "THIS IS THE FINAL DESIGN WITHIN THE CURRENT FEE SCHEDULE. ANY FUTURE REVISIONS WILL BE BILLED SEPARATELY AT AN HOURLY RATE" or something like that.

    I like Shelley's idea. I have already started numbering the versions in effort to get my point across (i.e. when sending drafts via email, the subject will say "Design #4", etc.).

    At any rate, tchan's business sounds interesting. I'll send them an email to see what I can do for the sports marketing arena.
  • Posted by Chris Blackman on 9/19/2004 at 1:09 AM Accepted
    Blaine

    I you had agreed to paint the ouside of this guys house, completed the job as contracted, then he called and said, 'You know what, that's great in the white, but I think I'd like to see how t would look in blue..." Would you repaint it at your own expense?

    Probably not!

    You need to agree the whole project scope and timeline, and a menu of costs for variations and "author's corrections/changes".

    Then, bill him and perform the work as per schedule.

    When he makes a change, just get him to sign off on the modified scope, modified cost, and additional timeline. Issue the invoice for the chnage right there and then.

    That way he gets what he wants, and you get to do what you do - and the way the customer likes it - his way - and you're not out of pocket.

    Right now it seems like you're rewarding his negative behaviour by just doing what he asks and there's no downside for him - except he burns up a bit more retainer, so what...?

    He needs to feel the same pain you do. It's his mind that's changing all the time, NOT YOURS!

    hope this helps

    ChrisB
  • Posted by ReadCopy on 9/19/2004 at 9:07 AM Member
    I guess you can tell when your business starts to become sophisticated when you start to look at individual customer profitability rather than just over all profitability.

    Its a tough but necessary decision, you know you cannot afford to 'carry' any of your clients, you are a business and not a charity and your clients will understand.
    If he isn't being profitable, you must make the drastic step :-)

    Good luck bud
  • Posted by Blaine Wilkerson on 9/19/2004 at 2:47 PM Author
    The versioning strategy is growing on me. Combine it with Chris and Tim's idea of a "per diem" amanedment to the current agreement, and of course, we can't forget Jose's words of wisdom....and I think I would have a pretty good solution.

    Sometimes it is hard to formulate appropriate responses on your own..especially when you are angry or feeling duped.

    Just goes to show even outsourcers need to outsource! We are not indestructable. We have businesses to run just like our clients. Even doctors have to go to the doctor!!

    Thanks everyone!

    I'll leave it open for awhile...

    P.S. D4Demand - Very good insight! I don't believe we have met, but I look forward to working with you in the near future! Good stuff!
  • Posted by Blaine Wilkerson on 9/19/2004 at 3:59 PM Author
    Thanks Jose! I like the mind set you have created. The tone and attitude of my approach is very important.

    Right now, I am trying to decide if I should be kind, open, and express my concerns on a friendly, more personal tone...Or approach him with a rigid, corporate, professional stance.

    Either way, I will be presenting an amendment to the contract.

  • Posted on 9/20/2004 at 6:08 AM Accepted
    Hi Jett,
    You've gotten some great advice above. I just need to add this to give you another perspective . . . :

    I WAS THIS CLIENT.

    I actually felt guilty all over again when reading your post, since I was, through no fault of my own, such a nightmare client! My agency wanted to literally kill me because I kept giving them revision upon revision (my then bosses couldn't agree on anything). It was a disaster. And we all knew it. The more you revise, the more you'll want to revise. It's an endless cycle.

    Eventually the agency literally asked me to take pity on them. And I did. I have since sent many clients their way, so not all was lost.

    So, I say stick with it and see what you can get out of this temporary (although it feels like a lifetime) situation. Just let your client know that if this were any other client, the collaboration would have ended months ago. Since you do have that friendship in place (or did until recently I'm guessing), you should definitely play it up.

    Best of luck. We're here for ya!
  • Posted by telemoxie on 9/20/2004 at 8:27 PM Member
    Sorry - when I wrote my response, I had assumed the client was requesting minor changes... it sure sounds like a tough situation to me.

    One more thing to watch out for - as you described in more detail what had happened, it sounds more and more like a situation I had found myself in. I kept working and working with the client as they made change after change. I kept working to bring the project to resolution - and if finally came out that the reason for delay was that the client did not have the money for the final payment.

    I would have much preferred that the person be honest with me - I could have easily sold the extra time to someone else.

  • Posted by Chris Blackman on 9/21/2004 at 10:11 AM Member
    When is enough? Probably about here...
  • Posted by Chris Blackman on 9/21/2004 at 10:11 AM Member
    When is enough? Probably about here...
  • Posted by Blaine Wilkerson on 9/21/2004 at 1:52 PM Author
    Thank for your help everyone!

    I'll come back and post the results.

    Stay tuned.

    --Blaine
  • Posted by Blaine Wilkerson on 9/22/2004 at 3:14 PM Author
    Update-

    I elected to simply get a verbal confirmation from the client that his new requests would require an amendment to the contract for "new design guidlines".

    Then, I sent an "Amendment to Service Agreement- Statement of Work", which outlined and defined the diference between "minor design adjustments" (i.e. Black instead of blue), versus "major design adjustments" (i.e. changing the whole format, function, style, etc).

    The amendment also stated the additional fees involved along with deadlines for new material, and statements regarding limitations and the need for additional payment for future re-design requests.

    I just finished meeting with him and he accepted everything without argument. So I still have my client, increased my fees, re-established control, and will be moving forward.

    Again, thank you all for your time and excellent advice! Hopefully, we can all learn from this experience.
  • Posted by Blaine Wilkerson on 9/23/2004 at 11:41 AM Author
    P.S. - Special "props" go out to SRyan for providing a template for me to model my amanedment...and Deremiah CPE for his off-site positive reinforcements.

    One more thing to note:

    I did not engage the client in a finger pointing contest by expressing my frustration and giving long diatribes about interferring my schedule, detailed reasons for the amendment, etc. EXCEPT for telling him we need to proceed in a more structured fashion from now on, and a small statement in the deadline section of the amendment itself stating:

    "... In the event Client X decides to reschedule the launch date and/or continue to request alterations to the design outside of the parameters outlined above, Client X must reschedule the new launch date according to Jett Enterprises Inc.’s schedule so as not to interfere with Jett Enterprise’s commitments with other clients."

    This way, I was able to avoid an emotional outburst. I simply told him it would cost more money and here is the date I can deliver. Sign here please. It worked. I am holding the signed amendment as you read.

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