How Do You Deal With “bad” Customers?

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As a business owner you have a choice as to who you want as a customer. However, you don’t want to be seen as rude when dealing with customers who demand too much, even though at times you may feel compelled to just say no outright. You have to figure out a subtle approach to ensure you don’t expend too much time, energy and money towards them, while at the same time it doesn’t appear rude.

So what are the subtle ways in which you can deal with the customers who you don't desire to have?
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