In my recent interview with Robert Kaplan, he addressed how he feels about firing customers. He says it should be the last option. He recommended examining your own processes first, ensuring you are efficient in dealing with these customers. Then try pricing special services, which may prompt a change in customer behavior. And then talk to the customer about ways his behavior can change -such as increasing the average order size. If all else fails, suggest the customer find another supplier or raise your price.
 
“But there are a whole series of things you can do to transform unprofitable customers to profitable ones,” Kaplan says.
 
Read the interview with Kaplan, Take Strategy to the Front Lines, <a ...