It’s your business, and you do have some control. Your goal is either to reduce your expenditures over these high-cost/low-profit (HC/LP) clients or to increase the revenues you receive from them, making them a high-profit /low-cost (HP/LC) account.

The clients who are low-volume, with little possibility of increased business, may not be worth the effort. Why not just raise your price to make them profitable or simply refuse further business from them? In either case you win. They become profitable, or your stress is reduced.

Who & why: You can probably name your HC/LP clients off the top of your head, but for this exercise list them on a sheet of paper. Then, write next to each name specifically what makes them HC/LP (e.g., slow payment, discounted price, bad impressions, service demands, etc.) along with the traits that make you keep them as clients.

You will probably find that most HC/LP accounts have a couple problem issues, but very few have all the problems, and most have a redeeming feature or two. For example, the dentist who sends bad impressions and has a remake problem might pay promptly.

The point of this exercise is to identify the behavior that’s causing a particular account to fall into the HC/LP category.

Get specific: Try to categorize the issues between technical (e.g., bad impressions, reduction problems, etc.); business issues (late payments, discount requests, etc.); and service issues (demands for immediate pickup, constant rush cases, etc.).

Look internally at your laboratory first. Are these issues that you can correct? Consider the possibility the problems are your fault, at least partially, and explore potential solutions. Are your turnaround policies clearly stated and communicated? Have you tried saying no to those special requests when they are frequently abused?

Cause & effect: Once you have determined specifically what the cause of the problem is and that it does in fact lie with the client, you can start to address it with the client.

Lab owner: Doctor, I appreciate your business and the work you send to our lab. I really like your (insert something positive).

Doctor: Thank you.

Lab owner: I do have a problem, however, and I was wondering if you could help me out.

Doctor: I’ll try. What’s the problem?

Lab owner: I appreciate your effort. I’m having a problem with my fees, and I need to see if we can work something out. Here is what I’m proposing…

The key here is to focus on one issue at a time. Go into the meeting with a specific proposal to solve a single problem. Get that problem resolved, wait a month or so, and then start on the next one, if there is another.

Sometimes, the gap between what the client wants and what you can deliver just can’t be bridged. That’s why you need to have a constant marketing program percolating along, bringing you new accounts. It’s much easier to take action dealing with a HC/LP account when you have confidence that you can ultimately replace them with an HP/LC account.