Corporations as major customers and their risk for small businesses

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Mitu100@
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Joined: Tue Jan 07, 2025 4:28 am

Corporations as major customers and their risk for small businesses

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In contrast to service providers who do their work individually for individual customers, the effects on producers or service providers of standard products are much more far-reaching. First and foremost, I am concerned with decisions in product development that are influenced or even initiated by the one major customer. If, for example, we as a CRM software manufacturer had a customer that was significantly larger than the remaining customers and this customer made up a large proportion of our monthly revenue, then we would have quite a conflict of objectives.

The major customer will almost certainly have different requirements than our normal customers. Perhaps they need some additional functions for which they would pay even more money. From a results perspective, it would be logical to say yes and amen to every request from the major customer. In the china telegram screening medium or long term, however, this would almost certainly be the end of the road, because the major customer does not fall into our target group and while we are making things right for them, we are making the product worse for our actual customers - the small companies.


Especially if the major customer does not fall into the core target group and the service for him has an impact on all other customers, then you should be very aware of the impact of this customer concentration.


Just to make a quick distinction: the major customer does not necessarily have to be a large company, it is the customer for whom you do most of your work. If your major customer is also a very large company, then the relationship is usually even more difficult for the small company as a service provider or supplier.

Purchasing or, in modern German, “sourcing” decisions are all too often made in large companies on the basis of incomplete information. It is not uncommon for little to be said and previous cooperation fades into the background. Perhaps there has been a change in management, perhaps there is a restructuring, an outsourcing of entire areas or or or... This makes it difficult for the service provider or supplier to calculate and a risk if they are dependent on the corporation as their major customer.
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