It’s time to look past the “80/20 rule” (the idea is 80% of your business comes from 20% of your customers).
We need to look at the inverse. 80/20 means also that 80% of your hassles are going to come from 20% of your customers.
Let’s translate it even further. 80% of hassles really is 80% of lost profit.
Regardless of who you are and how good you think all of your customers are, you still have some who need to be fired.
After all is said and done, you’re not making any money off those customers.
Here are my 5 reasons why you need to fire some of your customers:
1. Customers you get because of a low price will always be low price customers. Don’t forget that low price equals low profit.
2. Customers who demand a high level of service and aren’t willing to pay for it are sucking your profit.
3. Customers who demand too much of your time are preventing you from spending it on other activities that will create incremental sales and profit.
4. Customers who you can’t satisfy will tell others. Last thing you need is to have customers who simply don’t fit with your model then going off and telling other customers.
5. Bad customers are a disease that will suck the life out of you and everyone else in your company.
Never forget that sometimes the most profitable business you have is the business you don’t have.
When you invest your time with bad customers, you’ll find yourself attracting even more bad customers. Sell to great customers and you’ll find yourself selling to even more great customers.
Copyright 2015, Mark Hunter “The Sales Hunter.” Sales Motivation Blog. Mark Hunter is the author of High-Profit Selling: Win the Sale Without Compromising on Price.