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Calculator-itis

Let’s talk about what I call “calculator-itis.”

My definition of “calculator-itis” is when business owners and sales reps continue to charge customers the same margins year after year without any routine, timely reviews.

Continuing to charge customers the same margins over time doesn’t make sense because our value to customers grows as our expertise grows, and as they grow to rely on us as a trusted advisor. Additionally, some customers can become more demanding of us and our company resources over time.

That’s why I recommend an annual review of all your customers and the margins you are charging them. Further, in your annual review, you may identify some customers who should no longer receive the personal attention you provide them and should be delegated to an inside customer service rep or newer sales rep (not at full commissions).

Let me encourage you to schedule an annual review of all your customers, the margins you charge them and the time they require from you, and make the changes that are best for you and your bottom line.

The cure for “calculator-itis” is an annual check-up.

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Read past articles in Greg’s Million Dollar Mindset at Promo Marketing Magazine

AboutGreg Muzzillo, Founder of Proforma

Greg Muzzillo started Proforma as an industry distributor in 1978. The company grew quickly and in the early 1980s Proforma was recognized for three consecutive years on Inc. magazine’s list of the 500 fastest growing companies in North America. In the late 1980’s Proforma introduced its membership program to enable distributors to retain their business ownership and independence, and to share in sales and marketing resources, purchasing power with industry suppliers, one back office including all billing, accounting, vendor payments, cash flow, computer systems and more. Today Proforma has more than 750 members with over $500 million in sales. Proforma has over 100 members in its Million Dollar Club and more than 40 members in its Multi-Million Dollar Club (With sales ranging from $2 million to over $26 million). In 2014, eight Proforma members were named to Inc. magazine’s Inc. 5000 List of the 5000 Fastest Growing Companies.

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