In this article, I highlight four of the many strategies contained in the all-new “OUTLOOK 2006” report, an interim update on the key trends identified in our industry trends report “Facing the Forces of Change: The Road to Opportunity.” (Both reports are available online from NAW/DREF at www.nawpubs.org.)
Stop trying to indiscriminately acquire customers simply to spread the fixed costs of operations. Instead, focus on retaining and growing with your most valuable customers. The current economic environment is also ideal for recalibrating business processes to remove the unneeded capacity from their organizations. Understand how your company really makes money and recognize that nearly all fixed costs can be considered variable over time.