Chapter 3

Is my biggest customer really my most profitable?

Khách lớn nhất có chắc là khách lãi nhất?

The chapter's question

Of my five largest customers, who leaves the most after everything is deducted?

Big idea

For the same product, two customers can leave very different profit margins.

In this chapter

  1. Part 3.1

    Cost to Serve

    Which customer demands the most time?

  2. Part 3.2

    Discounts by Customer

    Who is getting the deepest discount, and why?

  3. Part 3.3

    Payment Terms as a Cost

    What does a late-paying customer cost me?

  4. Part 3.4

    Customers Worth Declining

    Is there a customer who costs me more the more I serve them?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of What It Actually Costs is free to read right here.

Read in Conan School

Chapters of What It Actually Costs

  1. 1.Is there a fair way to split overhead?
  2. 2.What is this product costing me that nobody records?
  3. 3.Is my biggest customer really my most profitable?
  4. 4.Why doesn't dropping a losing product raise profit?
  5. 5.How long does a cost sheet stay true?