Who are your MOST PROFITABLE customers?? - Cleaning Talk - Professional Cleaning and Restoration Forum
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post #1 of Old 12-21-2009, 09:29 PM Thread Starter
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Lightbulb Who are your MOST PROFITABLE customers??


I'm conducting research for an article I'm writing about the most profitable clients in the service industry. Who brings in the most net profit for you? Is it medical grade cleaning? Doctors, dentists, plastic surgeons? Or... is it manufacturing facilities and warehouses? Does the square footage make all the difference or is it the type of facility? Please be as detailed as possible. Before I decide to use your information in my article I will contact you before doing so to obtain your permission.

Thank you all very much!


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post #2 of Old 01-16-2010, 10:11 PM
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So what is the name of the magazine you are written the article for?
this your website? http://www.businessbattalion.com/

RJ Cleaning Service Inc
Serving Central Massachusetts
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post #3 of Old 03-27-2010, 01:33 AM
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Who are your most profitable customers? A bank's best customers are those whose relationship profitability exceeds the institution's return on assets and return on equity goals, said Thomas M. Petro at a session during the Bank Marketing Association's National Marketing Conference in Boston. Petro is president of Profit Research Consulting, Inc. in Pittsburgh, an affiliate of Bryn Mawr Bank Corp. Petro reported that in the banks his firm works with, two-thirds of the customers are unprofitable. "Some of you may think, `This makes sense, this is the 80-20 rule,'" he said. "But the 80-20 rule does not apply to profitability." He gave another rule for customer profitability: 5% of bank customers generate 100% of the bank's profits. "Do you know who those 5% are?" he asked. Petro outlined four steps to measuring customer profitability. He used the account data of a fictitious bank customer named Joe Smith for his calculations, which are summarized here. Step one. The first step is to calculate earnings on such services as transaction processing and safe-deposit boxes. The banker divides these services into groups: "explicit charge" services, for which the customer is charged a fee, and "implicit charge" services, for which the customer is not assessed a fee. In July 1989, Joe Smith wrote 23 checks and made six foreign automated teller machine withdrawals. He was charged 25 cents per check and 20 cents per ATM withdrawal. Therefore, the total fees the bank received from those two activities was $5.75 for his checks and $1.20 for his foreign ATM withdrawals. To figure out the cost of providing these services, multiply the unit cost of processing a check by the number of checks and the unit cost of a foreign ATM withdrawal by the number of those withdrawals. (The Federal Reserve publishes a Functional Cost Analysis that contains industry averages for these unit costs.) It cost the bank $3.22 and $4.68 respectively to handle Joe's checks and his foreign ATM withdrawals. Next, subtract any fees that the bank waived for Joe that month. Joe's bank didn't waive anything, so the bank made $2.53 through handling Joe's checks and lost $3.48 through his foreign ATM withdrawals. The implicit services Joe used were on-us deposits, foreign deposits, an ATM inquiry, and on-us ATM withdrawals. The cost, the unit costs multiplied by the total number of activities, came to $6.26. On all the services the bank provided to Joe in July, it lost $7.21. Step two. The second step is to calculate earnings on deposit balances. While Joe maintained $12,355 on deposit in average ledger balances during the month, not all of that money was available to the bank to use to fund investments on loans. The first thing to do is make adjustments to that balance to find out what the bank was actually able to use on the asset side of its balance sheet. The reserve requirement for an account is the customer's ledger balance multiplied by the bank's reserve rate. The reserve balance for Joe's account is $1,483. This amount is subtracted from the collected balance (not the ledger balance) to get the investable balance. Out of Joe's average balance during the month, what was available for either loans or investments was $9,953. One more factor has to be considered. In the first step, it turned out that the bank had lost $6.26 on Joe's implicit charge services. This loss has to be accounted for with an activity balance (which is sometimes called a compensating balance). The activity balance is the amount of money that, at the bank's earnings credit rate, will equal $6.26 in interest for the month. (One good way of calculating the bank's earnings credit rate, in other words the weighted yield on all assets, is to use the average cost of all funds.) The interest ($6.26) multiplied by 100 divided by the earnings credit rate (7%) annualized is the activity balance: $1,088. When that activity balance is subtracted from the investable balance, you have the available balance: $8,865. The usable $8,865 multiplied by the earnings credit rate (7%, amortized for the year by multiplying it by the number of days in the period and dividing it by the number of days in the year) gives you an earnings credit of $51. This is what the bank earned on Joe's deposits for the month.The next thing to do is subtract from that earnings credit any interest expense. Because Joe has a free checking account, there was ...
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post #4 of Old 03-30-2010, 05:07 PM
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Depends on the job really.....in terms of the actual amount to be made...any big contracts you are fortunate to get!


Local Cleaning, Domestic and Commercial, Hitchin Hertfordshire...UK
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business , clients , marketing , most profitable , profit

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