“Buyer’s Remorse”

I thought I’d share an e-mail I received recently from an attorney who attended one of my programs…

Dear Sandy,Buyers Remorse

I am a corporate attorney.  At a recent event for alumni of my college, I met an alumnus, George, who had started a company with a partner and was looking for an attorney to help him with several matters on a retainer basis.  We had a great conversation.  George told me he was impressed with my enthusiasm, and set up a call to have me meet his partner on the phone.  While after speaking with them both, I had some reservations about working with the partner, they signed a retainer agreement and gave me credit card information, which I processed. 

Under our agreement, either party could cancel at any time, but if the client cancelled without good cause, a certain minimum amount would be due.  As we were in the process of choosing an appointment for our first discussion of one of the issues I was going to be handling for them, George called me to say they wanted to cancel, telling me that they had money issues and had been able to resolve some of the issues we were going to work on by themselves.  He asked for the full fee back.

My problem is that I’m reluctant to simply let him and his partner out without at least keeping the minimum fee, as agreed.  I incurred merchant fees and I put time into talking with them both and preparing to deal with our first issue.  Then, there’s the precedent.  And, frankly, I’ve already spent the money and now it will be coming out of my own pocket.

Richard

My reply:

Richard,

Give them back their money, in full.  While minimum fee/cancellation fee agreements are not uncommon, the loss of good will from insisting on the minimum fee–or even holding back the credit card processing charges–will eventually impact your business negatively.

Maybe their emotional intelligence told them that you wouldn’t be happy working with George’s partner.  Or maybe what George told you was the truth.  Either way, this is a classic case of “Buyer’s Remorse.”  It happens to everyone who sells anything, including legal services. The sale moves quickly, the buyer is caught up in the seller’s enthusiasm (but may not have established a sufficient amount of his own enthusiasm), there’s an agreement, and then, when the buyer is alone, the doubts creep in and he wants to back out.

Give them back the money and tell them that when they are ready, you’d like to talk again.  Ask them if they know someone who could use your help right now, given that you set aside time to work on their matters.

To minimize the occurrence of Buyer’s Remorse in the future, consider these ideas:

  1. Focus your “sales” conversation on questions that foster a prospective client’s independent enthusiasm for working with you–and on determining, authentically, whether this is really a good fit.  Get so deep into their situation with your questions that they feel compelled to retain you to get help with their issues.
  2. Take the credit card information and set up the first appointment on the spot for as soon as possible.  If it can be done, set up a complete schedule.
  3. Give them homework.  Get the giving of value started immediately.
  4. Finally, hold the credit card for a few days before processing the payment.  That way, if despite doing everything I’ve suggested, the client does back out, you don’t incur any costs.

Take your need out of your client relationships from the very beginning, and those relationships will grow stronger.  Then, keep REACHING…

Sandy-Signature(2)