I have a different perspective, being a difficult (or as I would like to put it, demanding) customer myself.
A happy customer is always better than an unhappy one, especially if you’re just building your name in the business. My opinion is that you should see this customer as some sort of investment, promotion if you would like (I read somewhere you’ve got a good budget for this!).
You did about 6 redesigns, which means you've invested about R1.400 in this customer so far. By the sound of it, your expected returning business will earn you way more than this. Therefore, my opinion is: Calculate your expected return on investment and see if your still breaking even and if you even can stretch this a little bit more.
Also: What is usually the case that unhappiness goes both ways and I assume your customer is not too happy either. Apparently he expected more (whether he should have or not, that’s not even the point and in the past).
The best way to get over bad feelings is to meet each other eye to eye. As we all know, communication by email is not always the best solution. I think you should think about what last offer you can make them, go over there, have a chat over a coffee, make him happy and get all the new business in!
And take this as a great learning experience: Make sure the expectations of the delivered product are the same as the delivered product!
Good luck!
(and I hope I don’t encounter your customer!)
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