Shredding is a “sticky” business. Over the past 10 years, we have discovered that one of the characteristics of shredding customers is that once you have earned their trust, it’s difficult for a competitor to earn their business. If you’re using contracts, it makes losing an account even more difficult.
Organic Profit Growth
When you acquire a new a customer, you benefit from what we call organic profit growth, which comes from:
- Growth of the customer’s business
- Convenience drives a natural growth in number of containers
- Awareness of privacy and confidentiality concerns drives the need to shred more materials
- Changing laws & regulations drives the necessity for more shredding
- Pricing opportunities over the business relationship enhance revenue
- Cost reductions result from increased “route density”
- New services enhance that the revenue potential per customer
In addition, when you communicate frequently with a new customer and deliver the level of service the customer requests, you can add even more growth through word-of-mouth referrals.