and customers reluctance to do so has allowed Psychex to build a relatively sticky customer base that now has 650
000 clients. The firm’s strong brand also fuels growth and promotes customer retention since customers are hesitant to entrust their critical human resource (HR) functions and payroll cash to an unproven competitor. “Strong scalability has also allowed the firm to be price competitive without feeling significant margin pressure.” Psychex can spread the costs associated with its servicing infrastructure across its large customer base. Collectively
