The customer paying full price who costs you money

Price differences between customers are visible to everyone. Cost differences are usually invisible, and they are often the larger number.

By Steve 5 min read
Abstract bridge artwork for The customer paying full price who costs you money

Most firms can tell you, to the pound, what each customer pays. Very few can tell you what each customer costs. The discount is recorded on the invoice; the four extra phone calls, the bespoke report, the redelivery, the ninety-day payment habit and the account manager who spends a third of her week on one relationship are recorded nowhere. So the conversation about margin fixates on the visible half of the equation, and the invisible half (which in service-heavy and mid-market businesses is frequently the more variable of the two)…

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