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Cost Management- Which Clients are Costing you Money?
By Yolandi BooyensIn standard15th June, 2014Could it be possible that some of your clients are actually costing you money even though they pay you at the end of each month? You might be wondering how it is possible that someone paying you for a service actually costs you more than they pay you but believe it or not it happens all the time.
So how would you know and monitor this? With business management software. Specifically cost management software and document management software combined can give you an overall view of your cost to service ratio and show you where you are losing and where you are making money.
Keeping it Fair
There are different levels of service delivery and as a service provider you should always try to make your clients and customers feel like they are getting more than the service they are paying for. They won’t feel this way simply because you tell them they are getting more but it should actually be visible to them. For example; maybe your customer service is excellent or your delivery times are always fast and accurate- you should use the element of surprise to keep your clients happy.
Being Profitable and Generous
Generosity does not mean giving your clients half of their money back every time you deliver a service but entails you delivering on your promises by giving a 120%. To run a business in today’s competitive environment you need to be smart and different.
But what about those customers or clients that are always unhappy no matter what you do, that call you ten times a day, take hours of your time to sort out problems which are not really problems and, ultimately, cost you more than you make. How do you measure that? That is where cost management software comes in. You need to keep track of the hours you spend on each client or customter and work out what an hour of your time costs you. Because time is money.
What is your time worth?