That may sound like a simple question – your best customers are obviously the ones that order most often, spend the most money, and never complain – right? Not necessarily.
That frequent, high-volume customer may be your worst enemy in disguise. One company had been selling a particular product to a customer for a number of years under an outsourcing arrangement. The customer had apparently decided that this company could do a better job, for less money. And it’s no wonder – after a thorough cost accounting review and improvement project, the company discovered that they were selling this product at below cost. In other words, every time this wonderful customer placed an order, the supplier company lost money. Continue Reading »
