Originally Posted by
Psyduck1
All I've done in the past year is shed unprofitable customers and worthless employees. Sales are down but OI is up and I don't think I'm nuts...If you're not profitable in the long run I don't want your business.
To be fair, in your industry you probably don’t have massive quantities of inventory that spoils every single day if it isn’t sold. Even fresh produce lasts longer than airline seats; the only other industry I think is remotely comparable to airlines/transportation is live event ticketing. Appointment based businesses (doctors, lawyers, plumbers) have much lower capacities and being selective about clients is much more important to them to ensure their time is spent on the most profitable clients.
But for a stadium or an airline, getting as many of those seats full as you can is a real priority, as long as you always have seats for the profitable clients and don’t accidentally nudge them into lower revenue products instead.