Keys to Successful Businesses Ann Arbor MI

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.

Bee Tree Consulting Ltd
(734) 426-8439
433 Bee Tree Ln
Dexter, MI

Data Provided by:
The Right Place Inc
(616) 771-0325
161 Ottawa Ave NW Ste 400
Grand Rapids, MI

Data Provided by:
Task Acquistions Group
(616) 421-8200
1971 East Beltline Ave NE
Grand Rapids, MI
 
Tongxin International Ltd
(248) 593-8330
199 Pierce St Ste 202
Birmingham, MI

Data Provided by:
Bee Tree Consulting Ltd
(734) 426-8439
433 Bee Tree Ln
Dexter, MI

Data Provided by:
Business Strategy Inc
(616) 261-2200
944 52nd Street Southeast
Grand Rapids, MI
Services
Business Consultants and Advisors, Management Consultants, Marketing and Public Relations, Computer Systems Consultants and Designers, Market Research Consultants

Data Provided by:
AdviCoach
(517) 599-2782
11683 Hidden Spring Trail
Dewitt, MI
 
Barefoot Cramer & Assoc
(248) 594-0766
111 S Old Woodward Ave
Birmingham, MI

Data Provided by:
Logical Arts
(517) 485-6685
413 Leslie St
Lansing, MI

Data Provided by:
Rochester Avon Recreation Authority
(248) 656-8308
108 E 2nd St
Rochester, MI

Data Provided by:
Data Provided by:

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.

    Click here to read the rest of the article at SuccessMagazine.com