Why You Need to Fire 37% of Customers

You have a choice here (on how you find out why you probably need to fire some customers).

You can watch a short video or read the summary below.

Click here for the short video.

  1. This blinds/curtains company had 150 customers per month.
  2. From start to finish, there were 24 steps involved in every order.
  3. Every order below €214 was losing money.
  4. This meant that 37% of customers were losing them money.
  5. Like most businesses, their pricing method did not reflect all the steps, so smaller jobs were priced too low.

 

Based on this analysis, the following decisions have been made

A. They immediately increased prices by 25% on every order under €300.

B. They reduced their number of products from 120 to 65.

C. They focused more marketing on high-end profitable blinds and grew sales in this area.

D. Six months later, their % of loss makers had dropped from 37% to 9% (some of these loss makers involved orders which reduced old stock from their warehouse).

E. After 8 straight years of decline, last year’s sales were up 18%.

F.  The owners took their first holiday for 5 years J