So continuing on with our theme of customers or clients we are now covering the question of How much does each instruction cost the business?
To look at this in more detail you will have to consider both the direct and indirect costs.
So what do I mean by direct costs?
These will be what you actually expend in attracting them to you. This will therefore be your marketing (direct and indirect)expenses including advertising, leaflets, postage, articles (copywriters or employee)social media and other ways of getting your name into the public domain.
Indirect costs will include Training your whole team, cost of hardware and software to enable you to manage your business efficiently and maybe also investing in Consultants to discover areas for improvement.
I have only scratched the surface of the actual cost but you can run a calculation just taking the above into account and I expect it will cost on average £100.00 without you paying any introduction/referral fees (Where legal).
So are your fees/prices at a level that will support such a cost? If not what will you do to resolve the issue and how much harder will you work to retain those customers that you already have in order to make them clients of yours who who help you obtain additional work?
See you next week