Both accounts pay £2,000 a month. One of them calls every day.
When every customer pays roughly the same price and no two cost the same to serve, the profitable ones are quietly funding the rest.
SBy Steve··5 min read
Two accounts bill the same each month. One sends a clean order, accepts the standard specification and pays on terms. The other calls three times a week, revises the brief after work has started, wants deliveries split, and pays at sixty days. In the management accounts they appear as identical lines: same revenue, same gross margin, because the cost of serving them was never measured separately. Only one of them is worth having, and the business has no way of knowing which. This is one of the most reliable sources…
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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.