This week’s Let’s Talk, we asked our experts how to finally stop saying yes to clients who drain your energy and profits.
Ever find yourself nodding along to a client request that makes your stomach drop?
You’re not alone. We’ve all been there – saying yes when every fiber of our business sense is screaming no. Whether it’s the client who wants champagne results on a beer budget, the one who changes direction every other day, or the nightmare customer who treats your team poorly, learning to say no is one of the hardest (and most profitable) skills you’ll ever master.
Let’s talk about why the wrong customers cost more than just money, and how our experts learned to spot the red flags before signing on the dotted line.
Let’s Talk!
Monique Biady, Head of Commercial ANZ and Singapore, Checkout.com
“In business, saying “yes” to every client feels like the path to growth. But the reality is that the wrong clients can slow you down, whether through delayed payments, misaligned expectations, or demands that do not scale. The challenge is knowing when to pause and assess if a relationship is truly additive to your business.
“The same principle applies to payments. Many merchants rush to say “yes” to every market or new channel, only to find themselves managing fragmented systems, high costs, or operational headaches. Without the right infrastructure, growth can quickly become complex.
“The solution is to be intentional about where you focus and to build the right foundations. In payments, that means having technology that adapts as you expand, whether that is entering new markets, accepting new payment methods, or managing risk at scale. By setting yourself up with a flexible, unified platform, you can say “yes” with confidence to the opportunities that drive sustainable growth, and politely decline the ones that pull you off course.”
Elise Balsillie, Head of Thryv Australia and New Zealand
“What does it really cost your business to say ‘yes’ to the wrong customer? The impact is rarely immediate, but over time, the pattern starts to emerge. Your business pours energy into mismatched work, duplication of effort and loyal clients are left waiting.
“The safeguard is process. When your business captures enquiries in a structured way, tracks interactions automatically and sets clear boundaries upfront, you gain the visibility to decide who to work with and when. Intake forms, automated confirmations and centralised customer records all help qualify fit before a project begins.
“Saying no to the wrong customer ensures your capacity is invested where it matters most. Businesses that embed smart systems into their client journey free up time, reduce strain and focus their attention on the customers who generate loyalty, advocacy and long-term growth.”
Brad Giles, Author of ‘Bigger Isn’t Better, Better Is Better,’ Owner OF Evolution Partners
“Too many owners say yes to the wrong customers because they haven’t first defined who the right ones are. Not all revenue is good revenue. Transactional customers who buy on price alone can erode margins and distract from the relationships that matter. The right customers are those who stay longer, buy more often, and refer others because they trust you and feel loyal to your business. These are the people who create long-term value, not just short-term sales. When you stop chasing every deal and instead invest in customers who can become genuine advocates, the compounding effect is profound. Better customers strengthen your business and increase its value over time.”
Lauren Clemett, CEO, The Audacious Agency
“If you are attracting the wrong customers there is a misalignment between your brand, marketing and messaging and your services or products.
“The trap most entrepreneurs fall into is that they try to help ‘every Mary in the dairy’.
“This scattergun approach wastes time and money and makes it incredibly difficult to wade through your prospective customers to find the right ones.
“The secret is to niche. To get known for doing one thing extraordinarily well. Build a profile around that and leverage your personal skills, talents and expertise (expert-ease: what you do with ease that others find difficult) so you naturally attract the right customers who say yes to you!
“Unfortunately our entrepreneurial brains see every opportunity and it’s hard to get over the bright-shiny-objectitis and say no to FOMO, but with so much noise in the business world, you need to get known for something you can totally own. Choose your path and take steps to build your brand.”
Maud Vanhoutte, Soft Skills Chef: Cooking Result-Oriented Training Workshops & Coaching Sessions, New Reflections
- “Redefine what ‘wrong customer’ means through values alignment
Are you able to assess if your tendency to say yes to the wrong customer comes from a lack of clarity or a lack of assertiveness? What is a right vs a “wrong” customer for your business? - Confidence and assertive communication
Your “yes trap” is usually fear-based: fear of missing out, disappointing, or seeming unhelpful. Saying no to others at times means saying yes to yourself. What will that yes to your customer cost you? - Emotional regulation and decision-making under pressure
As a small business owner, it is easy to say yes when stressed, tired, or pressured to answer on the spot. The invitation is to pause, take some distance and probe your options for more rational decisions. What would change if you delayed responses when unsure? - Long-term trust and reputation
‘No’ is not a rejection but a way to protect quality and brand promise. Your customers respect honesty and do not like being overpromised and underdelivered. How can you say no with respect and consideration for both your customer and your business/yourself? - Practical toolkit
- Listen actively: Understand what the customer really needs; you may be able to offer a greater alternativE.
- Reflect: Does it align with what you do best? Can you guarantee satisfaction? Will that impact another client’s delivery?
- Communicate clearly and offer an alternative only if it works for you.
- Respond, do not react: Saying no is not rude and can be done gracefully and kindly. No need for passive-aggressive or defensive response.
“Remember, by saying no to others, you are saying yes to yourself.”
Christopher Melotti, Brand Comms Consultant, Content Marketing Advisor, Strategic Copywriter, AI Ethicist Policy Writer & Founder of Melotti Content Media
“As a marketing consultant, I’ve found that the reason many businesses say yes to the wrong customers is because they haven’t taken the time to define what a good customer actually looks like. Without a clear customer persona, it’s easy to chase every lead and end up with mismatched expectations.
“Marketing starts with strategy. When you know who your ideal client is, you can shape your messaging to attract the right people and naturally filter out the wrong ones. It’s not about being selective for the sake of it, it’s about being smart with your time, energy and resources.
“From brand positioning to pitching, every touchpoint should help qualify leads. Marketing and sales techniques should work together to guide the right clients in and gently steer the wrong ones out.
“Saying no isn’t negative, it’s a strategic move that protects your brand, sharpens your focus and leads to better outcomes. When your marketing is aligned, the right clients will be saying yes to you.”
Piya Choudhury, Director & Fractional CMO, Peez & Co
“Every business has its own definition of the ‘wrong customer.’
“It could be someone who drains resources, doesn’t align with your values, or simply won’t pay on time. The common thread is that these customers cost more than they bring in – financially, emotionally, and reputationally.
“So why do businesses keep saying ‘yes’? Often, it’s fear. Fear of missing revenue. Fear of damaging reputation. The misconception that all revenue is good revenue. Or the hope that ‘this time it’ll be different.’
“Early-stage businesses often accept any paying customer, while established ones struggle to turn down familiar clients who’ve become problematic.
“But over time, the wrong customers erode margins, exhaust teams, and distract from better opportunities.
“Identifying them early is essential for sustainable growth. That means tightening up your pre-qualification process. Attract the right people through clear branding and messaging that reflect your values. Use intake forms or discovery calls to ask questions that reveal fit – budget, goals, decision-making style. Don’t ignore red flags, especially around payment history or unrealistic expectations.
“Saying ‘no’ can feel uncomfortable in the short term, but it protects long-term growth. The right customers energise your team, pay on time, and become advocates. The wrong ones? They’ll drain you.
“Stop saying ‘yes’ to the wrong customers, and you’ll create space for the right ones to find – and value – you.”
Daniel Lazarus, CEO and Co-Founder of Industrias Services Group
“When you’re starting out, the instinct is to say ‘yes’ to every opportunity. Revenue is revenue, right? The problem is that not all customers are created equal. The wrong ones drain time, erode margins, and force compromises that undercut your reputation.
“In solar O&M, I’ve seen asset owners who focus only on cutting costs. They pressure providers to tick boxes cheaply, but when something goes wrong, they expect miracles. Saying ‘yes’ to those contracts is unprofitable and undermines the quality standards that the industry must uphold.
“The way to stop is by building filters. Define what a good customer looks like, and set non-negotiables in scope and pricing so you know when to walk away. Establish partnership expectations early and don’t sign the contract if those expectations aren’t shared.
“We’ve developed the discipline to walk away from deals where scope, price, or expectations don’t align with delivering safe, long-term performance, especially when the dollar numbers won’t support our ability to deliver quality consistently and sustainably. In business, long-term profitability matters because customers depend on us being there for years to come. Without it, providers risk going out of business just when owners need them most.”
Michael Russell, Managing Director at Finwave Finance
“The wrong customers aren’t just unprofitable, they can stall your growth, drain your team, and distract you from the people you actually want to serve.
“With our years of learnings here at Finwave, saying “yes” too easily comes from fear: fear of missing revenue, fear of slow months, fear of bad word of mouth. But the cost of serving mismatched clients to those who don’t respect your process, price, or people, almost always outweighs the short term gain.
“The solution is clarity: define your ideal customer profile and be ruthless about sticking to it. Who gets the most value from your service? Who’s easy to communicate with? Who pays on time?
“Once that’s locked in, design your onboarding and qualification process to filter in the right clients and politely screen out the rest. If someone doesn’t fit, refer them elsewhere. You’ll earn respect, not lose credibility.
“Saying “no” isn’t rejection, it’s strategy. Because every time you say “yes” to the wrong customer, you’re saying “no” to the right one.”
Hussein Chahine, Founder and Director of Ozzy Tyres
“At Ozzy Tyres, we have the capability to do what many can’t with fitment configurations designed by us and the ability to custom drill wheels to suit almost any vehicle. That flexibility is a huge positive for the majority of our customers, who want something unique and tailored.
“But experience has taught us that just because you can say yes, doesn’t mean you always should. If a request compromises safety, doesn’t align with our standards, or comes from a customer who will never be satisfied, we’ll say no. That decision protects our team, our brand, and ultimately the customer themselves.
“In the end, saying no is a positive strategy. It shows confidence in our expertise, respect for our resources, and commitment to serving the right customers the right way. Our website www.ozzytyres.com.au helps drivers achieve the perfect setup without compromise.”
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