There are countless examples of companies landing big clients. These companies of course, jump at the the chance to fulfill that contract and even secure one or 2 more large clients servicing the exact niche your business is in. Times are good, your business is making money, you think things are going great when one of your clients decides to switch providers or even creating a segment within their business to do what you've provided.
While dealing with the loss, you look at your numbers and how your business model, income and dynamic changes with the loss of the big client. This type of imapct on any company can make a huge difference. If your company is relying on a very limited number of clients with little to no diversification into other services or clients, it puts your entire business at risk.
Companies and business owners get into a somewhat placated nature when business is good. This is where that inaction can spell future problems for you. Having big clients are great, but you have to consistently be looking ahead, finding ways to get more clients, even if the contracts you get are small, your paving the way to lessen impacts on operations when big changes happen.
When your business provides services to other businesses, you of course want to receive a fair amount on what you're providing, however many times business owners try to over "sweeten" the deal. Every business owner needs to be flexible in their pricing but always have a limit to how low they can provide their services.
Business owners try and make their offers too generous, which leads to a sub-standard profit and discontent by at least one party. In this episode of Logical Logistics, host Joe Becht talks with Azmi Kiswani, the Vice President at Kiswani National.
Azmi explains how his legal background contributes to proper #renegotiating strategies and discusses how reliance on just a few large customers can have crippling effects to your business if one leaves.
Logical Logistics is powered by BellAir Expediting www.bellair.com
For more from Joe Becht and Logical Logistics, head to www.beslogistics.net/
Logical Logistics is powered by BellAir Expediting.