One customer is 31% of revenue. The concession never shows up in the price.

Concentration rarely arrives as a discount. It arrives as scope, terms and queue position, and as a set of requests the business can no longer decline.

By Steve 5 min read
Abstract bridge artwork for One customer is 31% of revenue. The concession never shows up in the price.

A single account at 31% of revenue usually looks healthy on paper. The gross margin is in line with the rest of the book, sometimes better. It pays. It renews. It has been growing for four years, which is why it is 31% and not 12%. Nobody in the business describes it as a risk, and the management pack has no line for it. The problem is that concentration is almost never paid for in price. It is paid for in everything that sits outside the price, and those concessions…

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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.

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