Increase Your Own Profits by Becoming Your Clients’ Profit Center

Contingent staffing is typically considered the major revenue generator in staffing sales. Of course. But do you put any thought into your clients’ profit? Because increasing your clients’ profit will turn your company into a profit center for them rather than a cost center — and separate yourself from the competition.

Here are some service offerings that can help set you up as a profit center for your client.

Project solutions. This service is being responsible for a deliverable, such as in IT software the release of upgrade 3.4, but is applicable to any staffing sector that is quoted at a fixed price, with documented performance specs, a delivery date, etc. It gets around markups and margins, is less competitive and can increase one’s ROI some two-fold. 

Value-added services. Here is where you provide deeply discounted or even a free suite of services to your client based on its volume, like a loyalty program. This may include a smorgasbord of up to 20 different services depending on a client’s needs, some of which are not even fully known to the client, but are prompted by the business developer. This includes everything from the evaluation of one’s internal staff using the same techniques as the staffing company evaluations the candidates it provides to its clients, alternative billing methods, discounts for outside services, free outplacement of direct hires for a limited number of executives, volume discounts, etc.  This can be for commercial staffing or any higher end specialty. The saving program is fully documented.

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Facilities management. In this, an entire department is given over to the staffing firm, which is then responsible for the profit of that department. The staffing firm and the client split the cost saving and the staffing firm gains access to all of the staffing business. 

The first two programs are similar to a loyalty program. The more business your client does with you the more benefits you can provide to them. But in all cases, you must fully understand your firm’s capabilities, the client’s needs, plus the knowledge of any possible undisclosed factors to be able to determine their level of risks. Contracts must be carefully drawn up for the mutual protection of both parties.

This requires a consultative sales process by a strong and experienced business developer who knows how to win the trust and confidence of the client based on their experience and knowledge as they ask and get answers to thorough and open-ended questions.

As these processes succeed and you deliver on your commitments, you become a solutions-provider, winning the confidence of your client over the long haul — and having to meet low-markup bids becomes a thing of the past. You will become the values and trusted provider, and your client will share with you their problems, strategic and tactical plans, opportunities, risk factors, contingencies, and so on.


Michael Neidle

Michael Neidle
Michael Neidle is president and CEO of Optimal Management, an advisor to staffing firm owners and managers.

Michael Neidle

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