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Old 11-13-2013, 07:22 AM
Right Touch Right Touch is offline
LawnSite Senior Member
Join Date: Nov 2008
Location: Hillsborough, NJ
Posts: 382
What to do with a non (or lower than your target) profitable set of accounts?

I started my business in the town where I grew up but moved to another town 10 years ago about 25 minutes away. I've maintained about 25 accounts in my home town until now but after doing the numbers, it is really not worth it to go down there anymore. The houses are small, income is much lower than where I live now, and no one ever does any additional work. The town I live in now I can and do get more money for the same work. I hate "giving up" these accounts, but every management magazine I read says you need to create a target customer and the houses in that town are certainly not our target customer anymore. My thought is to do some massive marketing to hopefully replace the income that would be lost by these accounts and then get rid of them. Of course selling them is an option but that is another story which has its own difficulties. It would also reduce my fuel bill for having to drive down there and reduce the stress of a crew being that far away if something happens and me having to drive down there to address customers concerns, which are usually minor- a weed here, not blowing off something there. There certainly are two sides to this- not giving up money but also not taking on every account "just because" and not creating a target market. I feel I could dedicate my time and resources better to our local customers by concentrating up here, which is difficult to put an actual dollar value on. Thoughts?
The smartest business man is not the one with the biggest business- its the one putting the most $ in his pocket.

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