You’re 3% of their spend. They’re 40% of your revenue.

Revenue concentration is the number everyone watches. The number that actually sets the power balance in a big account is a different one entirely.

By Steve 5 min read
Abstract bridge artwork for You’re 3% of their spend. They’re 40% of your revenue.

Most owners can tell you their largest customer’s share of revenue. Far fewer can tell you their share of that customer’s spend in the category they buy from. The gap between those two figures is where the negotiating power in the relationship actually lives, and it explains why some businesses with a 40% customer are perfectly safe, while others with a 15% customer are one procurement review away from a serious problem. Revenue share tells you what you would lose. It says nothing about how likely you are to lose…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

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.

More on Market analysis

Scroll to Top