GPI 365 – Compare the net gross profit of the top ten customers over the past five or ten years. Where did they go and what did you do wrong?

When you line up the net gross profit of the top ten customers over five to ten years, ask yourself which are the worst concerning net profit percentage of sales.  They may all be fine and appear good but the lowest percentage customers require the most from you for the sales dollar you receive in turn.

Questions to ask about largest net profit dollar customers:

• Which customer yielded the lowest net profit percentage? While checking this, find out when the last price increase was given.
• Which customers are the easiest to service or please regardless of the return on paper? Sometimes there are some customers that just fit other companies and some sometimes do not.  Some are easier to do business with and some are nearly impossible regardless of their profitability.  Find out which ones you wish to keep taking these other considerations into account.
• Which are the largest net profit dollar customers and what does your firm need to do in order increase their sales? Do they have more sales potential?  What have you done to demonstrate you can handle more volume? Have you told them and listened to their plans? What have they said to you? Did you or anyone in your organization recently ask these questions?
• Is there a commonality between those customers with the largest net profit dollars? Are they tied by the same products or services they buy? Are they customers located close to your facilities? Do they share the same excellent sales person?  What can be done to increase this group and your bottom line profit?