I recently had a company terminate a placed candidate 7 days after the 60 day guarantee expired. They first asked for a full refund (28K), then have asked to negotiate or no longer work with the company.
I have been on the other end of this situation and they expect the refund without any question.
Decide first of all if you want to deal with a client who doesn't stick to your terms and who threatens you if you don't give them what they want. If you really can't afford to lose them and they are a major account for you then you need to start negotiating. Explain your situation to them and explain again the work that you put into this placement, also explain that you value their business and what to find a compromise as you presume that they also value your service.
My advice is to just give a little at first as they are unlikely just to cut you off without negotiation, but at least you are demonstrating that you are keen to keep their business.
However as I said, if their business really isn't worth that much to you then I would walk away.
With any luck they will realise they are being unreasonable and you may retain their business for the future.... if you want to work with them again after this!
This kind of client would fall into the "there is always another client" category in my book.
Someone is playing hardball with you, and you need to play right back. I know its hard when you think you need a client, but this kind of client is called a "source" client in my book.
Adults signed a contract, made an agreement. The company chose to fire this person 7 days after the agreed upon guarantee time. What about this do they not understand? More troubling, what about this do you not understand?
Be proud of your services. Think of yourself as a true professional, not someone who can be kicked around. You gave them a service, you both agreed to the terms, what kind of person in business then starts to cry and whine? You are dealing with a jerk. Be proud of your services. What if you were a lawyer? Would they be trying this? I think not.
I'm the old broad of recruiting. You are in business. Clients are a dime a dozen. Go find another.