4 ms·
Every single firm will give sweetheart deals to large customers. The marginal unit cost of serving a large customer is always lower than serving a smaller one.
by zooq_ai 3y ago
Every single firm will give sweetheart deals to large customers.
The marginal unit cost of serving a large customer is always lower than serving a smaller one. Why shouldn't I pass the savings to that large customer?
The risk premium for serving a large established firm is lower than serving a smaller one (including payment failure risk). Why shouldn't I pass the savings to that large customers?
Large customers also give you predictive revenue and gives sufficient room in purchasing decisions. Why shouldn't I pass the savings to the large customers?
Large customers may also bring in other customers and open up new revenue channels for me. Why shouldn't I pass the benefit to them?
Economies of scale is a thing and that's how consumers get to enjoy low prices and high quality.
It's incredibly sub-optimal to punish economies of scale