Knowing When a Commercial Account Becomes a Liability
Every propane company works hard to win new accounts. So, the idea of firing a commercial client might seem risky or even wrong at first. But there are times when continuing a business relationship can cost you more than it’s worth. Knowing when to let go can protect your operations, your team, and your profits.
Looking Beyond the Surface of Problem Clients
A commercial client that constantly complains or delays payment may already be on your radar. But some issues aren’t as obvious. A client who seems easy to work with might be quietly draining your resources. If you’re constantly rerouting trucks to make special deliveries or spending time-solving problems that should be simple, those actions add up. This is not about personality conflicts. It’s about the actual impact on your margins, time, resources, and team morale.
You might also face clients who ignore safety protocols, cancel scheduled maintenance, or use equipment improperly. These behaviors create liability risks for your company and increase the chance of a dangerous incident occurring. If your team has raised concerns more than once about a particular client and nothing has changed, you may be putting your business at legal and financial risk by keeping that client.
Calculating the True Cost of a Bad Account
Every propane delivery has a cost. When a commercial client is in a remote area or frequently requests urgent deliveries, the cost per gallon goes up. If their annual volume doesn’t cover your delivery and service expenses, the account becomes a drain. These clients may also tie up your best drivers or fill your calendar with avoidable service calls. You have to look at more than just the gross revenue. Net profit and operational strain tell the real story.
Missed payments or late payments introduce a cash flow problem that affects your ability to pay vendors and manage inventory. Chasing invoices takes time away from growing your business. If you’re extending credit to commercial clients who pay slowly or dispute charges regularly, you may be hurting your own creditworthiness over time.
How to Tell When It’s Time to Part Ways
The decision to part with a client should be based on data, not emotion. Track key metrics like gallons delivered, average margin, delivery frequency, service requests, and payment speed. Compare these figures to your top commercial clients. If the numbers don’t hold up, it’s time to reevaluate that account.
It’s also important to listen to your team. Dispatchers, drivers, and technicians are often the first to spot red flags. If your employees are frustrated or concerned about a specific client, those insights should not be ignored. A single toxic client can push good employees to leave, especially if they feel unheard or taken advantage of.
Handling the Separation with Professionalism
Releasing a client should be done with clarity and care. Don’t leave room for confusion. Communicate your reasons in writing and give reasonable notice so they can find another provider. Avoid blaming or finger-pointing. Instead, state that your business model no longer supports the account based on operational demands or policy requirements. If possible, refer them to another provider.
Before you end the relationship, review any existing contracts. Make sure you’re not violating any contractual terms that could trigger legal disputes. Secure any company-owned equipment and settle final billing promptly to close the account in a clean and orderly manner.
Strengthening Your Company by Saying No
Letting go of the wrong clients gives you more time and resources to serve the right ones. It protects your team, boosts your profit margins, and keeps your standards high. You gain room to grow your commercial base with clients who value your service and pay you on time. The goal isn’t to shrink your business. It’s to make it more efficient, stable, and rewarding.
Choosing Growth Through Smarter Client Selection
Letting go of a bad commercial client shouldn’t be viewed as walking away from opportunity. Instead, it’s actually giving your company a fresh opportunity to fortify itself and create a solid client base composed of loyal and dependable customers. When you focus your energy on clients who respect your time, follow safety rules, and value what you offer, your business becomes stronger and more predictable. That’s how you build lasting growth in the propane industry.
