Keys to Successful Businesses Frederick MD

Salespeople typically rate their customers by at least four crucial factors: profitability, stability, vulnerability and potential for future business. Let’s look more closely at how you rate clients on each of those factors.

Global Web Accounting
(443) 919-9690
11 W Chase St
Baltimore, MD
 
Bridge Resume Services
(410) 727-2400
1035 N Calvert St
Baltimore, MD
 
Meeting Solutions Inc
(443) 627-2200
2 Hamill Rd
Baltimore, MD
 
Brennan Response Marketing Solutions
(410) 667-2500
3301 Boston St
Baltimore, MD
 
Emagination
(410) 234-1500
1030 Hull St
Baltimore, MD
 
Computer Services Unlimited
(410) 484-7380
2021 Willowcrest Cir
Baltimore, MD
 
Alabanza
(410) 244-6592
10 E Baltimore St
Baltimore, MD
 
Canton Group LLC
(410) 675-5708
2920 Odonnell St
Baltimore, MD
 
Graphics Communications Bellart
(410) 814-3612
501 W 23rd St
Baltimore, MD
 
Full Burner LLC
(410) 276-0386
3241 Odonnell St
Baltimore, MD
 

Keys to Successful Businesses

Salespeople typically rate their customers by at least four crucial factors: profitability, stability, vulnerability and potential for future business. Let’s look more closely at how you rate clients on each of those factors:

  • Profitability. This is by far the most critical factor because it ultimately determines the profitability of your business. To be really useful, this criterion needs to give you feedback on exactly how profitable a particular client is on a monthly, weekly or even a daily basis. You need to be able to determine if any project you are working on for any of your clients is profitable. That’s why it’s so vital to know your overhead costs.

You need to know which clients are most profitable, which clients are least profitable and which clients you are losing money on. For example, an A-rated client would be very profitable; a B-rated client would be about average, a C client would be below average, and a D client is currently unprofitable.

The challenge would be to upgrade the Cs and Ds to become Bs and As. That can be done by either improving your efficiency in serving them, or by charging them more money or a combination of those factors. If you can’t do one of those three things, it’s best to try to cultivate new clients to replace them. But don’t be too hasty...

  • Stability. A steady client who is slightly below average might be more valuable than a one-shot client that is rated B, or even A in immediate profitability. For example, I’ve had some clients for more than 20 years. Those are bread-and-butter accounts who help you meet basic expenses and smooth out the times when business is slow. So it’s a good idea to consider just how stable each of your clients is. Obviously, clients who are rated A or B on your stability scale would be more valuable than those that are rated C or D.

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