Eric Siu walks through a client who kept requesting work outside their contract, costing the agency $300k to $400k yearly. He sat down with them, showed the numbers, and renegotiated: either end the deal or formally add the extra work and pay for it. The client stayed, but now within bounds.
Chapters
One company asked us to go above and beyond, be there for a lot of meetings, do things that were out of scope, help us on other regions that we didn't even have a contract for. And if we didn't do those things, they would get upset and they would rate us very poorly when we were doing the reviews. So we sat down with this gentleman, nice guy, and I'm like, look, I know you're not happy because we're not doing these things. Here's our contract. Here's what you're asking us for. Here's our profitability on your account. We're losing money. And I know you're not happy. We're discussing on how we move forward. We're open to just ending the agreement or we can readjust the agreement. And they're like, oh, I didn't realize you were losing more money. And this gentleman was really kind. And they're like, look, it's in our company culture to just keep grinding our vendors. And I'm like, I get it. You should do whatever's best for you, but I don't want to lose $300,000, $400,000 on an account a year. That's a lot of money to lose. And they're just like, okay, no problem. We'll fix this. We'll stay within bounds. And if we want extra work, we'll add additional scope. And I was like, cool. But sometimes you just have to speak up and let people know.