Get rid of a customer and boost your profit!


Get rid of a customer and boost your profit?


“How the hell can that work” you’re wondering?


“And this is coming from Brendan who’s always harping on about focussing on customers.”


No – I haven’t gone crazy.


And no – neither am I contradicting myself.


Let me illustrate with numbers.


Imagine you have annual revenue of €1,000,000. And imagine it’s producing a profit of €40,000.  It’s a low margin – but it’s on the right side of zero!


But wait – let’s dig a little deeper into this scenario.


Imagine you have 2 customers providing you with that €1,000,000 – John spending €600,000 & Linda spending €400,000 with you. You’re making a profit on John of €50,000 and a loss on Linda of €10,000.


And imagine that Linda’s account is not the thin edge of a wedge you are confident of growing.  So there’s no compelling commercial argument to continue to sell to Linda.  Let’s look then at the numbers again – this time if you were to stop selling to Linda:


  • Your total sales? €600,000.
  • Your profit? €50,000.


You have reduced your turnover by 40% but boosted your profit by 25%!


So why is a non-accountant like me talking this language?


Well it’s simple. I want you to make more money.


Recently I was talking to an accountant. I asked him to estimate what percentage of businesses FAIL to break down their P&L by customers. And I specifically said I was talking about those businesses where the customers spend enough money to justify this type of analysis.


I was guessing a majority of businesses. He said a “large majority”.


Do you do such a breakdown?


If not – is this something worth your while looking at?


If you’d like to receive posts like this as emails, just sign up in the box below.  I blog infrequently – once or twice a month – whereas I email my list more frequently.  Sign up to avoid missing out!


Get Your FREE Copy Of My Guide: 10 Ways To Grow Your Profits Without New Customers or Cutting Costs

Simply enter your details below and click the button, and I’ll send you a copy of my guide, 10 Ways To Grow Your Profits

10 Ways To Grow Your Profits