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Neat-O: Dealing With the ‘Richest Man in California’
The customer, who Earl calls "probably the richest man in California," had stiffed Earl and his company — SmartSystems-Integrated Inc. — 23 years prior. So, this time around, Earl got his payments up front, but that didn't make his job any easier.
"You ended up having to do things with this guy in a way that you'd prefer not to do them," Earl explains. "It's all price driven for him."
The project started out being a very basic system — an extensive home theater and whole-house audio, and that was it. As the project went along, it grew, but not necessarily in a good way.
"[The client] would spend $200,000 on a statue," says Earl. "But then when you told him $20 for a speaker, he'd throw a conniption."
When it comes to dealing with "difficult clients," Raymond Earl of SmartSystems-Integrated Inc. has these tips:
Get paid up front. "If you now you have someone like this, you'd be crazy to do business another way."
Don't be afraid to say no. Earl says, "A customer of mine once said, '10 percent of your customers will cause 90 percent of your problems, so you need to identify that 10 percent and run!'"
Once the home was wired, it was no surprise that the homeowner changed his mind. Well after the drywall was up, for example, SmartSystems-Integrated Inc. had taken the home from a Russound multiroom system to a full-blown Crestron system. "That was very challenging," Earl recalls.
Three rooms of surround sound were added, all using identical remotes and identical touchpanels that also integrated with a high-end lighting system.
"We were able to do it," Earl says, "but it probably wasn't as good as if we had been able to plan for it."
Despite dealing with a very difficult client, Earl remains quite proud of several aspects of the job. For one thing, the projector placement Earl created really is something worth writing home about.
"The customer wanted the projector hung from the ceiling, which was 16 feet high. It would have looked terrible," Earl explains. Earl proposed that the builder construct a small room above the stairway with a small 2-inch hole for a long-throw projector lens.
"After much bickering about costs, he went with my idea," Earl says. "He continued to complain about cost, but the end result was magnificent, and I wouldn't have done it any other way."
Sometimes it pays to be as stubborn as the difficult client with whom you're working.
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7 Comments (displayed in order by date/time)
I thought I was the richest man in Califonia, this is not my house!
I remember a client who thought a $15K 50” pioneer was a huge waste of money. He explained the whole thing to us while he stood on a $15k zebra skin rug that was shuffled into the corner because they didn’t have any place else to put it.
My girlfriend things Crestron is a waste of money and i feel the same way about trips to the salon 
.
So that’s how you spell conniption?
If you want to get even with a customer, my best 2 solutions are;
1. Take their money.
2. Do a 2am Drive-By with an RF remote and turn their system on at full blast. Very effective.
Having a boat load of money and spending it are two different things. Everyone has a story about a client who spent 100x on something they though was dumb and 1x on the audio system.
What I find intersting is that over the years I have learned which clients will be trouble, and which ones will not. I can guarantee that a client, no matter their wealth, who is super-price sensitive, or doesn’t see the value in what you do, will not turn out to be a profitable customer. Chances are they will not be a happy customer either, unless you bend over backwards and spend your own money (profit) making them happy.
On the other hand if you have a client who trusts you and the value you add to the transaction than you will be happier, and so will they.
The difference is the value they see. Also think of this - that $15k Plasma they bought is now worth $600. I bet that $15k zebra skin rug is still worth 10-12k, or more! Wealthy people know our product is not an investment, it is a sunk cost.
Right on Dan!
We having a saying within my business;
A smart salesperson is one who listens more than they speak and is always closing when they do…
A smarter salesperson is one who knows when to walk away from a job.
—————————————
When it comes to wealth, never judge a book by its’ cover. I don’t care how big the home is or what kind or how many cars are in the garage. Many of these people are mortgaged up to their A-holes and live pay check to pay check.
There’s nothing wrong with a client being “price sensitive,” but you must draw a line in the sand from the beginning. If they don’t understand the value of the expertise and service you bring to the table, walk away and let them be someone else’s nightmare.
What still amazes me about this article is the fact that the client previously stiffed the dealer 23 years earlier, and Smart Systems decided to do business with him again. Everyone makes mistakes, but a fool is someone who hasn’t learned from them.
I truly believe the worst thing about this economy is that it forces dealers, (and manufacturer’s), to do things and deal with people who they would never would before when times were better to stay in business.
However, it’s also times like these when a dealer learns who their true friends are, (manufacturers & clients alike). When things turn around, it’s important we remember & reward those who never compromised or broke their promises when we signed those dealer agreements so many years ago.
Here’s a free plug… Out of 20 or so brands that I’ve been dealing with for almost 2 decades, Paradigm/Audiostream/Anthem is one company that never broke their promises. Their distribution has never hit Amazon, and they continually & ardently police their dealers regarding transhipping and pricing policies. Not to mention, they make one hell of a product that even sold at full retail is still a bargain to any client.
Raymond,
Did you install his network as well? If so, what products did you use? Any wifi coverage?