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@ryancooper · Jul 14
Story · Money

I fired my best client and revenue went up

A hard call, the math behind it, and what replaced the account.

On paper, firing Delgado Cabinetry was the dumbest thing I did all year. They were 40% of revenue and they paid on time. On the whiteboard where I actually track my hours, they were something else: 60% of my week, most of it spent on rush jobs quoted at a number I'd set two years earlier and never had the spine to raise.

The number I'd been avoiding was per-hour, not per-invoice. Delgado paid $6,400 a month and ate roughly 90 hours of shop time to earn it — call it $71 an hour before materials. My walk-in web-store orders, the ones I treated as a side hustle, were clearing $140 an hour, and I was turning them away because the shop was always full of Delgado's rush work.

So I did the thing everyone tells you not to do. I gave them sixty days, referred them to a bigger shop that actually wanted volume work, and shipped my last order to them in March. For about three weeks it felt exactly as reckless as it sounds — a 40% hole in the top line and nothing guaranteed to fill it.

What filled it was the capacity. With the rush work gone I finally built out the web store I'd been promising myself: photographed the catalog properly, wrote real product pages, and turned on the small-batch pre-orders I'd never had time to fulfill. By May the store was doing more than Delgado ever had, at better margins, with customers who found me instead of the other way around.

The lesson isn't fire your big client. It's that a client who fills your schedule at your worst rate is a cost, not an anchor — and the cost is everything you can't build while they own your week. I'd been reading a full calendar as proof the business worked. It was proof the business was stuck.

644 shifts 73 replies 301 appreciations 6,553 views
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