Why bad customers equal bad profits

Have you ever had a customer that just sucked the life/profit out of you or the company? If you have been in business for any length of time, the answer is always a resounding ‘yes’. Usually what happens is that you are halfway through a project and realize that you are not going to be making the right profit from this customer.

The reason that this happens is because we take clients that are not in our 'sweet spot.' When you accept a client that's not perfect for you, there are several bad things that happen:

• You end up spending extra time so the sale is not as profitable or in many cases you lose money
• You don’t  do a good job which eats at you and your employees
• You have unhappy clients that spread the word....even if you fixed the issue(s), their experience was not a good one.

The answer is to understand EXACTLY who your ideal customer is.

Click here to read our post How well do you know your perfect customer?