Not all customers are equal in the revenue they bring in to your business. In this video, learn about loss-making customers and how to focus on more important revenue sources.
- Now while we're looking at what to cut … I want to say that customers can be a cost as well. … I know this sounds counterintuitive … but some of your customers are probably loss-making. … I've noticed, actually, … when I ask people in training courses, … do you think you've got any loss making customers, … they always go, oh yeah, … and they always know who it is as well. … So you could do a parito again … and just look at your customers. … And in fact, if you did that, imagine if you had 80 and 20, … so imagine if 80% of your customers … were bringing 20% of the profit … and 20% of the customers were bringing 80% of the profit. … Imagine if you, obviously you've got … to look after those top 20% right, … but if you look at the other 80% who only bring in 20, … do you think they all are equal? … And of course, they're not, are they? … What you'll find within that 80 … is you'll have about 30 … who are probably bringing in, let's call it plus 30. … And then you'll have another 30 … who are probably bringing in zero, …
- Different cost areas affecting your business
- Comparing cost vs. income
- Enhancing your work environment
- Focusing on the most important management tasks
- Getting better deals on raw materials and labor
- Recognizing your optimum quality level
- The hidden costs of subcontracting
- Where to avoid cutting costs
- Top ten cost-cutting actions to take
Skill Level Beginner
What to expect1m 3s
1. What to Reduce
2. Reducing Labor Costs
3. Costs Other Than People
4. Top 10 Tips
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