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Is it time to focus on profit not turnover?

Losing a major client could be the best thing that ever happens to you

One of my mentoring clients lost a major client just before they started working with me. The los forced them to downsize the business. Turnover was severely reduced.

However, when my client reviewed the business figures, it turned out that they were actually making more money than before. The focus on expansion and turnover had led him to concentrate on turnover. It turned out that might not have been the best strategy.

Maybe it’s time to focus on profitable clients

What would your business look like if you produced less work but if more of that work was at a higher profit margin? Naturally, you may still need volume to fill your machines and pay for them. However, it is important to make scheduling space for more profitable work as well. This can make a big difference to many companies’ results.

One result of this is that you may not need as much resource in customer service and in production. The overheads can look very different.

Here’s how one print company has created a profit first business plan

It has just invested in a new press. It has more capacity. But it has worked out exactly how much volume, low margin work it needs to pay for the press. It has set a rule that there is a strict limit on the amount of work he accepts at low margins. Once it has this much work then it only accepts production at a much higher margin, even if it means the press is sometimes idle.

It has completely changed the focus of sales efforts. The team are now looking for a very different type of customer. It will change the profit margin of the company drastically.

What does your profit plan look like?

Take some time to review the figures. Would you be better off firing your worst customers (or raising their prices)? Are you focussing on the right type of work?

How do you create a sales plan that concentrates on more profitable clients?

Check out “How To Succeed At Print Sales” where I give you step by step instructions on how to create a 12-week sales project. It can be the focus a sales person needs to bring in more profitable clients.

Get your free copy of “10 Common Print Selling Errors And What To Do About Them’ (worth £19/$29) right now

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Download your free copy of 10 Common Print Selling Errors And What To Do About Them (worth £19/$29) right now

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