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Your customers are categorized as A, B and the smallest and least important, C customer levels. C customers typically own small orders that take a lot of time, effort and earn very little dollars compared to your overall company cost structure. If your C customers are not earning the highest profit margins, raise their prices. You cannot afford to waste your time on thousands of small orders that waste your company resources when other B and A company opportunities lie waiting in the marketplace.
Note: C customers are not categorized C just because the sales dollars generated so far are low. C indicates that there is no potential to ever be much larger (it is simply a small company with very little purchasing power). A small buying division of a multi-billion dollar company is not a C customer just because the purchases are small and not very profitable. That small division has great potential because it may lead to hundreds of sister plants adding large volumes not yet realized.
