OPEN FORUM: GET RID OF BAD CUSTOMERS
On OPEN Forum, Julie Rains tells you why she thinks you should get rid of bad customers. Have you ever considered cleaning house?
Are you ready to get rid of bad customers?
You should be.
Bad customers are costing you more than you realize. You already know that some customers are less profitable and more difficult to serve than others. Accepting lower margins on some accounts and making higher margins on others seems reasonable, especially if your sales are slow. And, if your business has limitless resources and you have unlimited patience, then you can afford this overall profitable mix of good and bad customers.
But, it’s likely that your resources aren’t boundless. Your business may have a specified (or limited) credit line, inventory availability, and production capacity; and you have just 24 hours in each day. Holding onto a bad customer, then, prevents you from serving the good ones.
Here are some types of bad customers and techniques to get rid of them (without alienating your good customers)…