Wednesday, May 8, 2019

Why don’t you want fewer customers?

You will probably do better if you have fewer customers if your profitability is low but you have a lot of customers. That’s because these customers are in love with your price and not you. If low price is your differentiation, you are getting people who don’t care about other things. It’s the wrong crowd to pull in. Someone is going to figure out a way to make a cheaper version and they will start going there.

Start raising your prices and start losing some customers; you will increase your profits and have more time. It will force you to think of key differentiators that are difficult for competitors to duplicate and in the long term do better business that makes business sense.

Do you have too many customers?

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