Are All of Your Customers Profitable For Your Business?
Summary
Even if you dont maintain cost data, you can sort the good from the bad by reviewing customer purchase volume and average sale price. These are the customers you cant afford to keep because, for example, theyre overdemanding and abusive to employees, expect special servicing or constantly request more time to pay invoices. But as with any shrub or tree, by pruning and getting rid of deadwood, youll create space for a healthier company to grow. Youll also be better able to focus on — and serve — your best and most profitable customers, ensuring that theyll continue to stay loyal to your business over time. EHTC is a dedicated, full-service CPA firm in West Michigan that focuses on helping clients to achieve their full potential through comprehensive accounting, finance and tax services.