Unprofitable Wholesale Customers

Parts007 · Post by **Parts007** » Sun May 19, 2002 2:30 pm

Is there a politically correct method to get rid of a undesirable wholesale customer. I have a few customers who buy "nickel & dime" parts only. These customers are far away (approx. 15-20 miles away from the delaership). Yet they expect me to deliver to them. Should I be nice and continue to handle these customers, or should I give them the boot. Any thoughts?

Tony R.

Richard · Post by **Richard** » Mon May 20, 2002 9:36 am

You can do it one of 2 ways. Either institute a 'delivery' charge for all orders under a set amount ($25~50). Or, just tell the guy (who IS a businessman, just like you) that you can't make a delivery for nickles & dimes. Good luck.

Chuck Hartle · Post by **Chuck Hartle** » Mon May 20, 2002 10:00 am

Richard has some great suggestions. Another "politically correct" suggestion is to slow down their deliveries. We used to rank these customers as "red light" customers. They nickle and dimed us and we were their last resort because we had the part. We would deliver to them when it was convienient for us and we were in the area, sometimes being a day and a half after the order. We also gave them 5 to 10 % less of a discount than our other loyal customers.

Chuck Hartle'

scotstrong · Post by **scotstrong** » Mon May 20, 2002 4:46 pm

You could also try shipping them their order by U.P.S. and billing them for the freight. A couple of orders with the freight equal to or greater than the price of the parts should get the message across.

RICKPLEM · Post by **RICKPLEM** » Thu May 23, 2002 9:05 am

WE USED THE THEORY ABOUT DELIVERY CHARGE AND IT ACTUALLY WORKED!!! IF THE EXPENSE IS EXPLAINED, THEY WILL GET THE POINT.

Parts007 · Post by **Parts007** » Fri May 24, 2002 9:14 am

Thanks everyone for your input

Tony R.

ctm · Post by **ctm** » Fri May 24, 2002 1:29 pm

We have set a minimum order price for delivery for shops over 10 miles of $50.
If their bill is $10 they pay $40 for delivery. This has taken care of most of the problems with my outlying shops. Have fun!