Your Biggest Customer Demands 20% Off. Do You Give In?
Your biggest customer accounts for 40% of your revenue. They demand a 20% price cut and give you 10 days to decide. Agree, and you could lose 80% of the profit generated by that customer. Refuse, and you could lose $12 million in annual sales. What would you do? Sonny Saggar, Professional Problem Solver, explains how he would handle this executive dilemma: establish the real economics, negotiate concessions in exchange for meaningful commitments, prepare for losing the account, and make a financially defensible decision before the deadline. **The lesson:** Revenue isn't worth protecting at any price. The objective is to keep the customer on terms that strengthen the business, not weaken it. **Sonny Saggar | Professional Problem Solver** NewPhysician.org | Discuss a Difficult Problem
Episode notes
Your biggest customer accounts for 40% of your revenue. They demand a 20% price cut and give you 10 days to decide. Agree, and you could lose 80% of the profit generated by that customer. Refuse, and you could lose $12 million in annual sales. What would you do? Sonny Saggar, Professional Problem Solver, explains how he would handle this executive dilemma: establish the real economics, negotiate concessions in exchange for meaningful commitments, prepare for losing the account, and make a financially defensible decision before the deadline. **The lesson:** Revenue isn't worth protecting at any price. The objective is to keep the customer on terms that strengthen the business, not weaken it. **Sonny Saggar | Professional Problem Solver** NewPhysician.org | Discuss a Difficult Problem