Economic Atrophy?

[Jeremy]

I just got off the phone with a customer (Director of an Event Facility), they are closing thier doors. I really felt bad for her even though she's still got a job with the parent company. Seems like she'll be OK but she's did seem a bit surprised/shaken up by it.


Anyway, this got me thinking: What if there are more "customers in crisis" that I am unaware of? Other than (the obviouse) addition of new customers how would you attempt to insulate yourself & your loyal employees from the atrophy in the economy?

Lets hear your thoughts, worst case scenarios & solutions....

 

[Out of Character - 0]

Over the last year we've had MANY established customers close their doors, suspend operations, or make huge reductions across the board. The total sales from these customers adds up to about $350,000 per year. Lucky for us we have been trying very hard to become as efficient as we can and gain as many new customers as possible. Much more emphasis has been placed on efficiency but were doing really well in that area now so were going to shift focus to "new customers". Despite the loss of a good amount of our regular work we haven't seen a decline in sales, and profits are up just a hair.

I KNOW that this is a generated depression and we haven't seen the worst of it yet. I see "getting new customers" as the only true way to stay ahead. Diversifying is 2nd in my book unless your not yet good at what your currently doing.

I do offer a discount to customers who pay forward, a small % do take advantage of it.

 

[XTREME1]

Do what Fon suggests in another thread and don't go after the big accounts and work you niche market making sure one or two accounts will not hurt you.

I got into doing epoxy floors and VCT and things of that sort because my customers were asking if I knew anyone who did that. I'd be damned if I am going to send good quality customers to someone else.

So as out of character said diversify your services

Fon said find your niche market that pays well and more available. Like when I was talking to you the otherday you pointed out you get more for less sq ft.

Query all your current customers on how they feel your services are(I know they are excellent) and have them right a letter of recommendation. In the questionaire ask what additional services they would like to see you provide and give them a list of services they may not remember what you are capable of.

By taking these steps you could expand your service base with your current customers so if a few fall off your income won't go to pot. Also you will have all your recommendations if they do go under you don't have to hunt them down for one and you can start trying to replace them and keep in contact with your point person chances are they will be tking a similar position with someone else. In your questionaire you could ask if they know other companies that may interested in your services and because you will be meeting them face to face you could get a read on how their company is doing

Just some quick thoughts

 

[Jeremy]

Thanks for the replies gentleman. Anyone else care to chime in?

 

[Brian R]

I've had plenty of my commercial accounts freezing up spending. Some are opening back up...some don't return phonecalls.

Good reason to keep up the marketing.