big customers are better customers?

Answer 1

it depends on the size and nature of business.for a retail business small customers are better customers and for large scale business, big customers are better customers.though the margin of profit is less in large scale business, turn over is important and they get more profits.if they depend on small customers, staff expenses and other fixed and variable costs would be higher and it is not a good business tactics. but in case of retail business, the owner requires small customers so that he can cater to the needs of that group.here the margin on profit is more.

Answer 2

That depends on both supplier/customer size relationship and leverage. First evaluate what sort of a supplier you are with respect to the customer. That will determine your negotiating leverage. The attention and customer service necessary to maintain business varies with each client, but new customers definitely need a lot of information and customer service to become long term buyers.

So the new ones get hand-held treatment and other customers get the level of service determined by sales volume, length of relationship and customer preference. Some customers prefer cordial interactions while others may need a personal touch. Psychology plays a big factor here.

While big customers will generate larger revenues in discrete lump sums smaller customers are the steady trickle that gets bills paid. Also, diversification is a key with bigger customers, have Plan B in case you lose one of the big ones. Will your business be able to absorb the impact or go belly up?

All the best.

Answer 3

Similar question has already been answerd including me. For your refereResolved Question
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kushagra gAbout Me
Member since: 09 December 2006
Are big customers the best customers ? provide examples to support and ans as long as u can?

2 weeks ago - 5 answers -

abcMember since: 06 November 2006

customer is said to be the king;whatever he says,is right,
what i mean is market can only survive,leave grow,only when there is demand and supply
and demand is given by what--customers
more customers,more the demand,more production,less per unit cost,more profit,more growth
lets take other way round,if we dont fatacy our customers,we wont be suppling what is demanded,we will just end up stocking our product,result---shut down,because our expences would outweigh profit
regardless of any market,any strategies we adopt,our target primemost has to be our customer
big customers gives you big margins--if profit is i mind.
otherwise there are ,governmental organisations ,who work on non-profit basis ,that too because it needs to lay the basic infrastructure for private and other organisations to grow and make progress


kerrberr9...About Me
Member since: 11 November 2006


As in big, do you mean fat? Are you that ignorant? Just because someone is fat, doesn't make them more apt to spend money. There are other reasons besides over eating that a person can be "fat" or "big". They may have a thyroid problem or other health reason or be on certain medications that do make it harder to lose weight and sometimes gain some weight. So, do your homework before you think this please. So, no I don't think big customers are any better of a customer than those that aren't. Just because you may see someone at a restraunt that is "big" with tons of food in front of them, doesn't mean all "big" people are that way. If you see someone in a wheelchair, someone who can hardly walk because they are big, don't just think its cuz they over eat. It could be a medical reason why they are that way. Trust me, I've been there, they don't always choose to be "big"!


by kerrberr95
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subramany... bAbout Me
Member since: 26 May 2006

not always.big customers sometimes dictate terms and conditions.although big customers are vital for our bussiness improvement small customers are eqwally important as they will be more in no. and they are the unpaid advertaisers for our bussiness and products.


cvrk3About Me
Member since: 26 September 2006

Big customers need not be the best cutomers. But best customer includes big customers also. I am not used to long answers.


Unquote

Answer 4

I presume your are referring to quality vs quantity?.

Both has its pro and cons.
Quality customers - comes with the volume and they probably make out 5% of your total client based.
However quality customers who spends more or pay more are usually very demanding and requires a lot of attention, follow up, value services and etc. In the end loosing 1 quality customers is like you loosing 10 quantity customers so you may not want to put all your eggs in one basket.

Take credit card for example a Platinum card members is treated differently from a classic card members as the % of satisfaction or level of expectation is very different.

Answer 5

it is said in the Pareto's 80/20 principle that 80% of a company's business is given by 20% of the customers. that doesnt justify your statement. even the balance 20% business is crucial for any company. customers - big or small, internal or external - are the real assets of an organization. Big is always not Better.

Answer 6

Big customers are attractive because they bring large revenues, and even if they're not profitable often change the economies of scale to make your other customers more profitable. Just make sure you don't put all your eggs in one basket, because if they leave, you don't want to go out of business.

Answer 7

If I lost all the big customers it would really hurt. But if I lost all the small customers, I couldn't survive.
You definitely need a mix but.

Answer 8

not necessary. even small timers are good. depends what kind of relation your company makes with your customers.

Answer 9

Maybe you are right,but some are bad paymaster so if that's the case they become bad customer lol...........

Answer 10

No, not always but most of them. You should always check out their track records before dealing.