How do you generate a bunch of prospects that have low risk with a high earning potential. This is what most companies seek and should streamline their organizations to take advantage of these types of orders. It is not about disregarding anyone product/market group even a high risk and a low potential. It is about matching these opportunities with the Right Customer and at the Right Time. Understanding this is key. Orders designated high risk and low potential with the Wrong Customer are selectively chosen and not even considered in your peak production. Taking a high risk job – low potential may be the right call with the Right Customer in the off season.

I often discuss being Customer Centric which not only a fantastic business opportunity but a requirement going forward. Even though most of us claim to be customer centric, the majority of us still think in a product centric manner. Why change this? When you are product centric, you have a product for everyone and standard list price. It is the way you think. When you are customer centric, you find the right customer for the right product at the right price – huge difference. But don’t think in applying your product (inventory and new products), think about product/markets. Think outside–in versus inside-out. If you think in broader terms before zeroing down you can adjust offerings and pricing accordingly.

As an example, you can sell more services, bundle offerings and as a result quit selling products as a commodity. You increase potential, looking for ways to be innovative and work with customers that will allow this – “your right customer”.

This way of thinking does not mean you wing it or you do not understand your cost. If anything you need to understand them better. The risk becomes smaller, because your internal processes get better. That is the carrot to get better internally and what will sustain improvements.

You will also grow as the definition of the Right Customer broadens. A result of understanding your prospects/customers wants and desires better which happens through increased knowledge transfer. A better definition may be that you achieve a better understanding of the work to be done which spurs innovation and design.

Related Information:
Value Chain Thinking is not Rocket Science
The Death of List Price
Customer Flow is not Linear or Controllable
An Appreciative Look at the World