The Wall Street Journal has an interesting piece today about companies divorcing clients that are either delinquent or too high maintenance.
When the recession was in full-force service, companies were happy to get any business they could get, and were willing to go to great lengths to cater to their every whim. That sometimes meant slashing prices and agreeing to less than favorable terms.
But now it seems many companies are giving the boot to slow paying customers in order to free up time and resources to the good ones—including Richmonder Kishau Rogers, owner of website deisgn firm Websmith Group LLC.
From the article:
As a result, by eliminating 5% of her clientele this year, the 36-year-old is saving 20% more of her time while the Web-site development firm’s 2009 revenue is on track to rise 10%. “It was the best decision I’ve made, because it really reduced the level of frustration that I was experiencing,” Ms. Rogers says. “It freed me up to the clients that are loyal and pay on time.”
The cut clients were mainly retail businesses or entrepreneurs seeking discounts because there own bottom lines were struggling, as well as demanding additional services beyond the agreed upon contract.
