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Pricing & Profit

Big accounts with thin margins

Spot it. Sight it. Solve it.

Spot It.

Your largest customers bring in a big share of revenue, and you are proud to have them. But they negotiate hard, ask for extras, pay slowly and expect special treatment. When you look closely, the margin on those accounts is thin, maybe thinner than on your smaller customers.

Sight It.

Big accounts often win concessions over time, one request at a time. Prices get negotiated down, extras get added for free and service demands grow. Because the account feels too important to lose, nobody pushes back. And the full cost of serving that customer, including extra time, special handling and slow payment, is rarely measured, so the true margin stays hidden.

Solve It.

Get a clear picture before the next negotiation:

  1. Calculate the true profit on each of your top five accounts, including service time and payment delays.
  2. List everything you provide that isn't in the contract.
  3. Decide which extras to charge for, which to keep and which to stop.
  4. Prepare for the next renewal with your numbers and a clear position.
  5. Keep adding other customers so no single account holds too much leverage.

A big customer should be a good customer, not just a large one.

Fixed it yourself? Great. Want help making it stick? Talk to a Troubleshooter.

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