What percent of business can you afford to lose? The typical answer is that you cannot afford to lose any of your volume without a major shock to both you and your business. Let me relate three incidences of what happened to three of my clients and how they responded to a loss of volume as a result of “being removed from a program”:
Company No. 1: The restoration company was doing a seven-figure volume with three offices; however a major program account of theirs decided to enact a change in management. The new regional program manager decided to stop giving business to the restoration company because the manager felt that the company was receiving too much business from his region. The manager cut them off in one day with no advanced warning. His only reason for doing so was that he felt they were receiving too much of his region’s business. The company should have shut down one of their three offices to cut overhead. Instead, they felt that it would be just a short time before they were back on the program. The restoration company did not cut overhead and it took a full year to get back on the company’s program work.