PDA

View Full Version : In relationship selling is dumping customers ever justified?


Simply Red
01-28-2008, 09:56 PM
Poll to follow...

mikeyis4dcats.
01-28-2008, 09:57 PM
are you asking if it's ok to fire customers?

**** yeah it is!

Simply Red
01-28-2008, 10:02 PM
are you asking if it's ok to fire customers?

**** yeah it is!
I'm inspired.

Simply Red
01-28-2008, 10:07 PM
This is why I posted this. IBM changes their drive part numbers like most of us change our socks. I received many po's via email on Friday. Today they returned a third of them. I can't help IBM changes their product numbers and on occassion I have to send a different FRU #. It is like taking a piss on my efforts when they do that shit. I'm really about to start quoting them high. If they do this to enough people nobody will want to sell to them. Especially in this industry. Too many customers out there!

KcMizzou
01-28-2008, 10:43 PM
This the easiest question I've been asked all week.

If a customer's costing you more than you gain from them (without the potential for a bigger long-term gain) you cut them loose.

It's common sense.

Tits McGee
01-28-2008, 10:45 PM
When the economy is strong. Today, treat them like gold.

Buck
01-28-2008, 10:45 PM
This is why I posted this. IBM changes their drive part numbers like most of us change our socks. I received many po's via email on Friday. Today they returned a third of them. I can't help IBM changes their product numbers and on occassion I have to send a different FRU #. It is like taking a piss on my efforts when they do that shit. I'm really about to start quoting them high. If they do this to enough people nobody will want to sell to them. Especially in this industry. Too many customers out there!

At work when that shit happens, we pass them on to a different sales-person. Eventually when everyone is fed up, they get the boot (or really high prices).

Simply Red
01-29-2008, 08:26 PM
And then today of course they gave me three more orders. What to do?

Simplex3
01-29-2008, 08:32 PM
When the economy is strong. Today, treat them like gold.
"I'm selling these units 5% below cost, but I'm going to make up for it in volume!"

In a down economy the guy treating his s**tty and unprofitable customers like gold is going to have a stable full of s**tty and unprofitable customers.

Simplex3
01-29-2008, 08:34 PM
And then today of course they gave me three more orders. What to do?
Will these orders be profitable after you factor in the "pain in the ass" factor? If so you take the orders. If not, you say "hey, the price went up" until either they leave or they become profitable.

RJ
01-29-2008, 08:40 PM
Sometimes less really is more. I once took over a district that had been losing money for several years. We dumped some accounts and dropped the monthly volume from about 800K to 600K and fired or moved the people who had been supporting that business. All of a sudden we were making money. Nothing magic, we just got rid of crap that moved a lot of $$ through the door but didn't make money. Cash flow is nice but stuff like that eventually catches up.

Rain Man
01-29-2008, 08:44 PM
I never fire clients, but I've got a couple that I have put into Walt Disney deep freezes so I can thaw them once I've discovered a cure for them.

Simply Red
01-29-2008, 08:50 PM
"I'm selling these units 5% below cost, but I'm going to make up for it in volume!"

In a down economy the guy treating his s**tty and unprofitable customers like gold is going to have a stable full of s**tty and unprofitable customers.
That's a `money` post` right there.

Simplex3
01-29-2008, 08:52 PM
That's a `money` post` right there.
In my line of work the customer is rarely right. If they were they wouldn't need to be paying me. :)

Simply Red
01-29-2008, 08:52 PM
Will these orders be profitable after you factor in the "pain in the ass" factor? If so you take the orders. If not, you say "hey, the price went up" until either they leave or they become profitable.
Oh yeah. Good margin. The thing is; the part number's are now exact. Again, IBM changes their part numbers and what is called a FRU# almost monthly. So it is a challege to sell exact numbers, though the product is identical.

Simply Red
01-29-2008, 08:54 PM
Sometimes less really is more. I once took over a district that had been losing money for several years. We dumped some accounts and dropped the monthly volume from about 800K to 600K and fired or moved the people who had been supporting that business. All of a sudden we were making money. Nothing magic, we just got rid of crap that moved a lot of $$ through the door but didn't make money. Cash flow is nice but stuff like that eventually catches up.
Exacto.

Simply Red
01-29-2008, 08:54 PM
I never fire clients, but I've got a couple that I have put into Walt Disney deep freezes so I can thaw them once I've discovered a cure for them.
:LOL: :clap: