Bad customers. Not all money is good money. It’s important for you to understand that. While it might seem like the best solution to just go ahead and give this customer that little bit of extra that they want or whatever, at the end of the day, it will likely end up costing you.
[inaudible 00:00:19] it. I quit.
I’m trying to show you guys how doable everything that I’m doing. This is the place for you.
I am here for you. Whatever you need, we literally got it.
Morning money gang. Carlo Greene here. It’s time to rise and grind this fabulous Friday. I don’t know if I know any other great F words to throw in there that won’t get this censored. Again, just a quick flick of the wrist is our body wave that I’m [inaudible 00:00:54] Look at that. From balding to baddy.
So this unit is already prepped for tomorrow. Got the center part going down. We’ve got the six inch parting space all the way back there like all of our lace front wigs have, but we’re going to be doing a wig haul today. We’re going to be talking about customers you should avoid, which will tie us back into the Pareto principle or what other people know as the 80/20 rule. We’re going to talk about edges. So I think we should just go ahead and get this out of the way.
Bad customers. Not all money is good money. Not all money is worth the energy and effort it takes you to get that money, and especially in the hair extensions industry when we have to deal with charge backs and we have to deal with all of these different claims and these weird scams going on, it’s important for you to understand that while it might seem like the best solution to just go ahead and give this customer that little bit of extra that they want or whatever, at the end of the day, it will likely end up costing you. What I’m talking about is a principle in marketing. It’s called the Pareto principle or the 80/20 rule and it states that when it comes to business, you get 80% of your revenue from 20% of your customers, and you get 80% of your problems from 20% of your customers. And then the opposite end of that is when people are wasting your time and when you are encountering these bad customers, they always end up spending less with your company. If anything they usually end up costing you more than you would end up making.
Now why am I sharing this with you? Because it’s important for you to know as a business owner. I’m not sure why the cause but I know that we haven’t had to deal with that as much as most people have, but we are having to deal with it and it is really unfortunate and it really sucks. Case in point. There is a dispute that we’re dealing with right now from a customer who ordered a couple of bundles and a closure and got her stuff, and the thing that put off the red alarm for me off top was the first couple of emails. When you’re buying something, how often do you send a couple of emails about the purchase? Not too often, unless you’re one of the type that I hope to avoid in my business. If you’re a business owner that’s totally different. We are talking about a partnership. You have questions. I have the obligation to answer every last one of your questions. I totally understand that.
But as a consumer that would take the time out of their day to write one of the longest emails we’ve received talking about how terrible the website was, how … Basic is literally a term used in that email. How we needed to rework the whole thing because she couldn’t find the kinky straight closures and, and so in my response, I mean this was before we had the crazy amount of business volume now. So I had a little more time. Not like I got time today because that’s the kind of time I have now, but I had a little more time, so I responded with a screenshot of the homepage. If you’ve been on Whitelabelextensions.com you know that it goes two picture or three pictures right on the homepage, picture, picture, picture, closures and frontal, wigs, bundles, literally. So I just send a screenshot of the homepage. I actually circle it because iPhones let you mark up the screenshot. It’s like, you had trouble finding this? That’s unfortunate. We will see if we can do better in the future. How else can we help you? Had some stuff to do.
And so, off top I knew that because I know this principle, it’s a business principle, so that means that it’s not something that changes. It’s just something you can expect as a business owner. So when it comes to the people that are more demanding for your business, they usually fall into the 20% of business that ends up costing you more money. So I knew that principle, and when I saw this email it was like ah, red flag going off, but at the end of the day we still have to deliver on the customer service aspect and respond, so we respond positively. Literally 17 emails, 17, 17, counted them, ends up making a purchase. We don’t hear from her for two weeks and then we get a message back talking about “My frontal enclosure, I got them installed two weeks ago and then I straightened them.”
Okay, side note. We’re building a huge operation here. This is just the beginning. It’s so important that I understand every different facet of my business. I need to understand what my customer service and my office assistants are going to be dealing with when they are picking up the phone with you guys. When they are responding to the emails. I have to be in that driver’s seat first so I can know what to expect and so that I can let them know. Once someone sends this number of emails, go ahead and only respond once every 24 hours because they’re part of that 20%. Because the likelihood of them actually making a purchase goes down with every single email that they send us. And this lady’s not the only one.
On the wholesale side of things, a couple of weeks ago … or no, this was right out the gate. And so we were really working to lock in our business clients. And so this is a woman who allegedly owns a wig shop, right in the booming part of Los Angeles. So we end up talking and I’m empathetic because she has a supplier that didn’t come through and she needs this curly wig and so me and her end up spending … I think anything longer than five minutes on the phone customer wise or it’s, unless it’s an actual consultation, unless it’s an actual thing we’ve scheduled, anything more than five minutes, that’s a red flag for you. That’s a red flag that that is a customer you don’t want.
Why? Because they’re going to expect you to literally drop everything that you are doing every time that they need something which just isn’t sustainable. We have more than 3000 women and probably men that have signed up for our wholesale program. We are serving every last one of them. This is going to be a person that demands we stopped serving all of the rest of you so that we can pay attention to her. In total, when it was all said and done, I spent five or six hours, hours on the phone with this woman and guess how much money she has spent with my company? Not a single dollar.
So I’m saying all that to say this, when you are working to build your business, you need to understand that not all money is good money. But again, like I said, empathy is super important for me. I am positioning myself as someone that will help guide you into the hair industry and to the top of it. So that also includes people that are just learning out about hair and are just learning out about how it all works.
But we get a call and it’s a woman and she’s upset. She says her sample pack, there’s something wrong with it. She tried curling or flat ironing the hair. The hair melted and it was like, wait a minute. I literally dropped everything because our hair don’t melt. The only hair that melts is his plastic hair and our hair is not plastic. If it is, then that means that something has has gone horribly wrong if you actually have plastic hair. So I’m on the phone with her. I’m asking her to send photos, asking her what products … Did she use any products on it?
And so then we finally get to it and it turns out that she has a flat iron that goes above 450 and she had it on 500 degrees and hair, anyone’s hair, my hair, like my hair under this wig, her hair, his hair, all of it melts after a certain point. After 450 degrees, your hair just melts off. You can Google it. I think it’s actually lower than that, but that is what the issue ended up being. So I’m super grateful that she gave us the opportunity to work through and get to the point of the problem. I’m grateful that she wasn’t like “No, I know this hair is plastic.” [inaudible 00:09:44] Just not receiving the information that was just factual because there are people just like that.
But again business owners, understand that when you are positioning yourself as a business, as a leader in your local area, you are inviting all of these questions in. You have to be humble enough and have to have empathy enough to understand where these people are coming from and to decide if it’s worth it to your business to help communicate the resolution with all of these people. So it’s a just another thing to put out there. That’s not someone I would necessarily avoid, but if we hadn’t dropped everything to respond, then she would’ve just been on the Internet talking about how that hair is fake, that hair melts, when in all actuality she literally set the hair on fire. That’s just something you should be aware of. That and then avoiding the customers that are going to cost your business so much more money than they end up bringing in.
So in addition to the 17 and then probably another at least 20, so we’re about 34 emails, calculate how much time it might take you to respond to an email. So that’s like hours I would say. And you guys know my consulting rates. It’s … that’s thousands of dollars that we lost and then the entire sale in itself is in dispute and we might lose a portion of it, but we likely won’t because we have every single message that we’ve ever sent her. The fact that lines of communication were open, very, very open for so long and that she didn’t have an issue with anything.
People are always going to try and get over on you, but you need to have different things in place so that you can better protect yourself when these things do happen because they will happen. It doesn’t matter if you’re going on live every other day and talking to your customers and building a relationship and building this, it literally doesn’t matter. There are always going to be scammers. There are always going to be people that want to take. There are always going to be people that feel like they are entitled to what you are building and to what you have. And you have to understand that as a business owner, nothing’s going to change. There’s nothing that you can do to stop those people from finding you, but there are things that you can do to protect yourself.
We ship all of our orders through PayPal and because of that we have PayPal’s seller protection. So when you ship your order through PayPal and you ship at USPS or whatever, it’s literally tracked via PayPal. So when someone says “I never received my order, PayPal”, PayPal’s like, “Yes, you did. Yes, the fuck you did.” And we ended up winning that. When it comes to this conversation with this lady and the 30 plus emails about this one order that she placed, and about how she’s a scammer and trying to get over on us, when it comes to that, we’re sending them all of the emails, all of the timestamps, and we are going to get a positive resolution on our side. We just know that’s how it’s going to work because we are doing what we need to do. Because we’ve made our shipping and returns policy super, super clear.
You have to go that extra mile when you’re working in a space that has a reputation for having these types of customers and these types of business issues and it sucks. If we were to have just shipped out this stuff any other way or not had our shipping policy in place or anything, then she might be getting away with what seems like a regular scam.
I’m just saying be wary be wary of that. Be conscious of it. Protect yourselves as a business owner because it’s on you to do that at the end of the day. Remember we talked about how everything falls into your plate when you own a business. It’s it’s all on you.
Definitely mark your calendars for this one, but I’m going to be going live with a tax expert, I think they’re called licensed agents, a licensed agent with the IRS, and one of … I might be going [inaudible 00:14:07] two different ones at two different times next week and the week following that. But registered agents. One owns a tax firm, another one has great accolades, but we’re going to be doing that together live. So make sure that you don’t miss that. That’ll be Tuesday, I think at 10:30 AM. Get ready for that conversation. I’ll see you guys back here live then.
In the meantime, make sure that you guys head over to my YouTube channel, 6 Figure Side Hustle with Carlo Greene . We stream the information here live and then we chop it up and make it into a beautiful story on YouTube. But that’ll do it for now. Until next time guys, peace.