In their radio show, Dirty Secrets of Small Business, Jack Mencini and Adam Sonnalter, coaches in their business, Maximum Value Partners, discuss key issues for small businesses.
In this weeks’ show, they discuss why it is important to know which clients and customers to fire. The question is: How do I convince my account managers to fire their top customers? If you’ve been losing money for years with some customers, it is time to increase your prices and then you will make money on the price change or the customer will leave.
In some cases, when the small business raised their prices, more than half of their customers stayed on board because they knew the small business and what they were doing for them. They wanted to stay on because even with the raised prices, the customer still felt they had a good thing with this small business. This emphasizes that it is difficult for customers to make a change to another provider if they have been together for a good number of years.
The small business owner needs to understand their numbers, what customers to let go of and which ones to go after to keep the business sustainable and profitable.
Jack and Adam coach small business owners to focus on having the right kind of customers…keeping a profile on what the right kind of customer is and realizing the positive relationships you have with those customers are steps to building your business. If you have a story to share about what happened when you raised prices, call into Jack and Adam, every Monday at noon to 440-946-9468.