Do you accept the proposition that all business is not necessarily good business? Or do you pursue new orders so aggressively that you are not able walk away from a bad deal?
If you sweep the streets, you will invariably take orders your competitors did not want. In rare instances, companies pursuing a predatory pricing strategy to put competitors out of business do succeed. But if you are a small to midsize company, this not a game that you should think about playing.
So let’s consider what might drive a company to go after all the business out there. They might want to grow, which is a good idea, but taking business at a minimal to no profit is not the way to go, unless, for example, you have lots of capital to finance your way to the point where you can make money this way, such as amortizing your fixed costs over a larger sale base or using loss leaders to penetrate a client and then increase your bill rate and margin rate.
If you don’t have such a marketing strategy and are able to track your performance to make sure you are getting where you need to be, then you should exercise a more disciplined marketing approach. This would include determining:
1. Which jobs you can make money at given your current costs,
2. Which book of business you can negotiate a higher price at and only taking those, and
3. Lowering your cost so that you can make a profit at the pricing levels you need to meet.
When you don’t have a well-thought-out and effective loss-leader program, or can exercise one of these three marketing strategies to make money, be prepared to walk away from this business. Many clients will try to find a vendor foolish enough to take business at a loss because they either do not know their cost, are desperate enough to take any business even if it is unprofitable to keep their staff busy, simply want to have a “big name” client on their books somehow hoping that the cache will bring in more profitable clients, etc.
Try negotiating a fair price before walking away from a bad deal. But when you can’t the best decision and looking for business that you can make a fair profit on. Know thyself and make your choices accordingly.
… [Trackback]
[…] Read More here|Read More|Read More Informations here|Here you will find 87095 additional Informations|Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More on|Find More|Read More Informations here|There you can find 83734 more Informations|Infos on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More here|Read More|Read More Infos here|There you will find 51666 additional Infos|Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More here|Read More|Find More Informations here|There you will find 61877 additional Informations|Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More here|Find More|Find More Infos here|Here you will find 85234 additional Infos|Infos on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More here|Read More|Find More Informations here|Here you will find 38789 more Informations|Infos to that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More here|Find More|Read More Informations here|There you can find 1393 more Informations|Infos to that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More on|Read More|Find More Informations here|There you will find 90510 additional Informations|Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More here|Find More|Read More Infos here|Here you can find 23597 additional Infos|Infos to that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More on|Find More|Read More Infos here|Here you will find 56317 additional Infos|Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More on|Find More|Find More Infos here|Here you will find 90536 more Infos|Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More here|Read More|Find More Informations here|Here you will find 55418 additional Informations|Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More here|Find More|Read More Informations here|There you will find 72003 more Informations|Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More here|Read More|Read More Informations here|Here you can find 1616 additional Informations|Informations to that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More here|Find More|Find More Infos here|There you can find 17391 more Infos|Informations to that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Find More here|Find More|Read More Infos here|There you can find 27134 more Infos|Informations to that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More on|Read More|Find More Infos here|There you will find 73388 additional Infos|Infos on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More here|Read More|Find More Informations here|Here you will find 98194 more Informations|Infos on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Read More here|Read More|Read More Infos here|Here you can find 91999 more Infos|Infos on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] There you will find 41914 more Infos: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]
… [Trackback]
[…] Informations on that Topic: thestaffingstream.com/2016/11/04/when-to-walk-away-from-business/ […]