Extremely low profit orders: Should I take such orders?

[King Belieal]

In my business, an average gig should give 30% profits after all expenses. It can be higher depending on the customer and the negotiating power.

For that kind of business, do you think it is right to accept a gig from a customer whose proposed price would give just 10% profits?

 

[gwolf666]

Personally, I believe that accepting a gig that only yields a 10% profit margin is generally not a good idea, especially if your goal is to maintain a sustainable and profitable business in the long run. While in some specific cases, such as high-volume projects or early-stage projects where acquiring clients is crucial, it could be considered. However, in general, working with such low margins can be risky, as it leaves little room for unforeseen events or additional expenses. Furthermore, accepting jobs with such meager profits can negatively impact service quality and your motivation, as it doesn't leave enough room to improve or invest in your business. I believe it's healthier to focus on projects that allow you to maintain at least a 20-30% margin, even if that means turning down some jobs along the way. Sustainability and quality should always be paramount for solid and reliable growth.

 

[Augusta]

Go for it provided you are still gaining for you. I would only go for the ones that are not too stressful

 

[Trush Jodie]

The only reason that I would work for a 10% profit margin only from normal 30% profit margin is if there are other benefits that I stand to gain from that customer beyond the money.

 

[Min George]

As a business person, I don't believe you should refuse any order as far as it has some profits. That same customer can give you big jobs tomorrow.

 

[eLdavis]

Yes, as long as you still get profit from it, then i think it's okay, who knows, they might refer a higher paying customer in the future.

 

[kit_hung]

In my business, an average gig should give 30% profits after all expenses. It can be higher depending on the customer and the negotiating power.

For that kind of business, do you think it is right to accept a gig from a customer whose proposed price would give just 10% profits?

As usual, your target is 30% profit and that is what makes the business grow stable. Now if you get a gig that only offers 10%, you have to ask yourself if there are other benefits like exposure or future deals because financially that margin is very small and can destroy the balance of your business unless there is an assurance of repeat business or other benefits. It is better to set your priorities straight and not accept every deal without looking at sustainability.

 

[Kross]

There are even times that business people serve clients for a loss in order to secure long term relationships that can bring mega deals.

 

[Fidelia]

I have taken orders even with smaller profit margins simply because I want to establish a relationship with the client.

 

[Augusta]

The only reason that I would work for a 10% profit margin only from normal 30% profit margin is if there are other benefits that I stand to gain from that customer beyond the money.

This is a smart idea
Everything should not just be about money benefits. If there are other benefits then one can go ahead