The customers you choose to serve will dramatically shape the business you build. This isn’t just about who pays you—it’s about the entire foundation of your company’s identity and future.
I recently read a thought-provoking blog post by Seth Godin that made me reflect on this crucial aspect of business ownership. He highlighted an important distinction: there’s a significant difference between customers who are hard to please and those who simply know exactly what they want.
According to Godin, a picky customer is fundamentally oppositional. Whatever you offer, they want something slightly different. They’re always one step out of reach, constantly shifting the goalposts. In contrast, a particular customer is straightforward—they tell you precisely what they want, and that’s what satisfies them.
This distinction got me thinking about how the customers we attract directly reflect what we’re putting into the world. If your client roster is filled with bargain hunters who constantly haggle over prices and nickel-and-dime your proposals, that’s not just about them—it’s about the signals your business is sending.
The Hidden Cost of Discount Customers
Building a business on price-sensitive customers creates a cycle that’s hard to break. When you’re constantly being pressured to lower rates, several things happen:
- You become less satisfied serving these clients
- The quality of your service may unconsciously decline
- You begin to dread interactions with these customers
- Your team becomes drained dealing with difficult people
Most importantly, these customers are rarely satisfied regardless of what you do. The relationship becomes transactional rather than transformational.
View this post on Instagram
Your Brand Promise Matters
I had a personal experience that highlighted this concept perfectly. Though I’d never been particularly interested in fashion bags, I once received a Tory Burch bag as a gift. The unboxing experience was remarkable—the box itself was exquisite, the wrapping paper elegant, and the protective bag beautiful. Before I even saw the actual product, everything communicated: “This is premium.”
This experience made me consider what brand promise my own business makes. Are you positioning yourself like a budget airline—constantly emphasizing lowest prices—or as a premium provider offering exceptional value?
For small businesses especially, competing on price is usually a losing strategy. We don’t have the scale, overhead margins, or bandwidth to cushion rock-bottom pricing. We’re not Amazon or Target. Instead, focusing on finding premium customers who value premium service creates a more sustainable business model.
Protecting Your Most Valuable Asset: Energy
Your energy as a business owner is precious and finite. Difficult customers who demand constant attention while paying the least drain this essential resource quickly.
Before entering into new client relationships, I recommend asking qualifying questions:
- What’s your timeline for this project?
- What budget have you allocated?
- Have you worked with a service provider like us before?
- What does success look like to you?
These questions help determine compatibility before investing significant time and resources. Remember, it’s perfectly acceptable that your business isn’t for everyone. That selectivity is a strength, not a weakness.
The Power of Choice
Many small business owners operate as if customers only choose us, but the reality is mutual. We have the power—and responsibility—to choose which customers we serve. This choice shapes our daily experience, team culture, and ultimately the trajectory of our business.
By being intentional about the customers you attract and retain, you create a business that energizes rather than depletes you. You build relationships with clients who value your expertise and compensate you fairly for it.
The next time you find yourself dealing with a difficult customer who’s constantly haggling over price, ask yourself: Is this the type of business I want to build? If not, you have the power to change course by being more selective about who you serve.
Frequently Asked Questions
Q: How can I transition away from price-sensitive customers to more premium clients?
Start by adjusting your marketing messages to emphasize value rather than cost. Gradually increase your rates for new clients while providing exceptional service that justifies premium pricing. Network in spaces where your ideal clients gather, and don’t be afraid to refer budget-conscious prospects to alternatives that might better fit their needs.
Q: Won’t I lose business if I become more selective about my customers?
You might experience a temporary dip in volume, but what you lose in quantity you’ll gain in quality. Fewer but better-aligned customers typically lead to higher profit margins, less stress, and more fulfilling work. This approach often results in stronger growth over time through referrals from satisfied clients.
Q: How do I identify potentially difficult customers before working with them?
Watch for warning signs during initial interactions: excessive focus on price rather than value, unrealistic expectations about timelines or outcomes, reluctance to share information, or dismissive attitudes toward your expertise. Trust your instincts—if something feels off during the consultation phase, it will likely intensify once the relationship begins.
Q: Is it ever appropriate to compete on price as a small business?
There are specific situations where strategic price positioning makes sense, such as when entering a new market or launching a new service with low delivery costs. However, this should be a tactical decision rather than your primary business model. Even when offering competitive pricing, focus on demonstrating unique value that goes beyond the price point.
Photo by; krakenimages on Unsplash