I recently got a question from a Jeff, a business owner from Wisconsin, that got me thinking: are all customers good customers?

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Here is Jeff’s Question:

”After writing a very thorough proposal some customers ask for a line item breakout. I feel the only reason they do this is to go online and look for lower prices for the hardware. How do you tell them NO without offending them? I have tried explaining to that what we sell is a complete solution. My question is, if they insist on a line item break out should I just walk away?”

Well Jeff, here is something to consider: Are all customers good customers?

The answer for me is no. Some customers see the value you and your company bring them. They appreciate your ability to solve their problems and they are willing to pay you for that service. These are also the customers who respect you and the people who work for you and who understand that as a business you are entitled to a fair profit.

Other customers nickel and dime you, run you and your people ragged with service demands that sap your time and your profits, are late paying bills, and show you no respect.

Fortunately for you, the Pareto Principle applies quite well in these situations. If you do some analysis, it is likely you will find that 80% of your profits are coming from only 20% of your customers. So is it really worth it to take on a new customer who starts the relationship off by discounting the value you bring to the table by commoditizing your service? Or are you better off finding customers who fit into that highly profitable 20%?

So answer #1 is yes – walk away. I do it all of the time. Of course it took me years to figure out that all customers are not good customers but once I did life got so much better. I’m not saying that it is easy to walk away from business. However, it is smart.

The next piece of advice is to make sure you know who you are as a company. What is your value proposition? How do you position yourself in the market - to prospects and to current customers? Do you sell complete bundled services or individual components? Are you clearly articulating your offering

Why is this important? If you find yourself in the position you mention in your question often, then it might be a clue that you are doing a poor job of telling your story. In other words your prospects don’t see the value in your bundled solution because you haven’t presented it in a way that connects with them. So you may want to take a look at your presentation material, positioning, and even the questioning methodologies that help you uncover your prospects’ problems.

Finally, make sure you are working with qualified prospects. Let’s assume that your presentation is perfect, your value proposition strong, and your price right. Unfortunately, none of that matters if your solution is not of value to your prospect because what they really want are unbundled solutions. It is like trying to fit a square peg into a round hole. The best way to solve this problem is to ask direct questions up front to qualify them before you invest time, energy, and emotion on prospects who are not qualified.

A Sales Guy Bonus: The next time your prospect says, “would you mind going back and giving me the line item costs for each component?” Say (and act surprised), “Wow, that is the first time anyone has ever asked me to do that. You know the reason that so many businesses choose us is because we come to the table with a complete solution (add your value proposition here). I’m just curious, why is getting a breakdown of cost by component so important to you?” Then shut-up and listen. Your prospect will tell you everything you need to know to either deal with the objection or to shake hands and politely walk away. Either way you and your prospect will be closer to achieving your business goals.

And remember to visit GoToMeeting.com/podcasts for your free 30-day trial. That's GoToMeeting.com/podcasts.

This is Jeb Blount. Thank you for joining me on The Sales Guy’s Quick and Dirty Tips for getting the deal done. Make sure to check out all of the free Quick And Dirty Tips Podcast, like Grammar Girl, Get It Done Guy, and Money Girl. These podcasts are a great way to invest in yourself. Please email your sales questions to SalesGuy@quickanddirtytips.com. I hope you will take a moment this week to connect with me in the sales community on www.SalesGravy.com.