Joe Ryder is back with the second installment of his new series. Today, Joe tackles this notion that many companies face, yet are afraid to confront: should your company eliminate the bottom 10% of your clients?

“As Director of Sales, I am always an advocate for our clients initially, as are most sales directors. This is because the bottom line is that it’s scary to turn business away. Yet, recently I have been coming across a plethora of articles that are challenging this fear by suggesting that a company will profit more by turning down clients. This got me thinking…

In general, the large majority of a company’s revenue comes from the top 20% of its clientele. These clients consist of the ones that provide the most work and can vouch for experiencing the best service. Village Print & Media has continuously thrived in business for 44 years because of our commitment to providing exceptional customer service. With that said, there are some clients that, unfortunately, make it difficult to provide great service, and as a result, affect the overall quality of service given to our clientele as a whole. These clients who make matters difficult can almost always be found at the bottom 10% of your client base.

Let’s begin with the premise that every employee’s greatest resource is time. Many of these clients are striving to be better companies and are looking for you to provide unconditional time and effort with inappropriate compensation. In my 19 years at VPM, we have been committed to providing all of our clients with phenomenal service and building great relationships with each of them. Ultimately, we want to do business with all of our clients, as long as we don’t go out of business doing so. Therefore, we follow a rule for all of our clients: we’ll provide the exceptional service and quality of work expected for a fair, reasonable price.

The negativity that a bad client puts into your life tends to keep you from finding quality clients. You may think you need the business, but the reality is that as soon as you evaluate your client base and identify the client who is a nightmare, you’ll probably find twice as much work elsewhere. “

What are your thoughts on getting rid of your company’s bottom clients? Share your thoughts in the comment section below, tweet them to us, and chat with us on LinkedIn. Be sure to check in next month to hear more of the real deal from Joe Ryder!