From the numbers to the change
- Your numbers say40% of sales from one buyer, who pays last and pushes prices every year
- The cause underneathCapacity and attention bent around one account; no second source of sales
- What changesReprice and reterm the large account, build a second leg, protect cash from it
- What to expectA business that can say no to a price cut
An illustration of how the thinking runs, not a client result.
The numbers to open first
Create a customer table: sales, gross margin, days to pay, and growth, for the last 24 months.
| Number | How to get it | What worries us |
|---|---|---|
| Top customer's share of sales | Their sales / total sales | More than a third |
| Top 5 share | Sum of top 5 / total | More than 60% |
| Margin by customer | Gross margin on each major account | The biggest has the lowest margin |
| Receivables share | Their share of debtors | Larger than their share of sales |
Likely causes, and how the numbers test each
| Possible cause | What you would see in the numbers |
|---|---|
| Volume bought with price | Largest customers with lowest margin and rising discounts |
| Terms eroded over time | Their debtor days rose year after year |
| No second leg | New customer additions are small or none |
| Capacity dependent on one buyer | Plant, staff or stock built around their orders |
What to change, in order of effect
Test the downside:
what is the profit and cash if the largest customer left or cut volume by a third?
Re-price and re-term the large account
using the contribution, not the volume, as the argument.
Build a second leg:
a plan, an owner and a target for new accounts in segments you can serve profitably.
Protect cash:
credit limit and escalation on that account.
Reduce dependency over time
with a target share, reviewed quarterly.
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What to expect, and when
The downside test and repricing conversation can start immediately. A real second leg takes months to build. The aim is a position where losing any one customer is a setback, not a crisis.
Mistakes that make it worse
- Assuming a long relationship means the customer cannot walk.
- Chasing volume from the large customer at falling margin.
- Ignoring that their late payments are a loan from you.
- Building the second leg only after the first leaves.
CFOAvatar complements every turnaround
A human CFO sees your business at the review. Problems do not wait for the meeting. CFOAvatar is connected to your accounting data and checks your numbers every day, so the scoreboard in a turnaround is always current. Ask it what an owner in trouble would ask:
What owners say after the numbers started talking
What truly sets them apart is their ability to dive into the details—cash flow, operations, and compliance—while simultaneously offering strategic insight that supports long-term decision-making. Their guidance has always been practical, thoughtful, and tailored to our specific needs rather than one-size-fits-all solutions.
The founders were consistently hands-on and always available for a call or conversation whenever clarity or direction was needed. That level of accessibility, combined with their integrity and absolute character in execution, built a level of trust that is rare in professional services.
Before CFOSurge came into the picture, our business lacked financial discipline. Once their team started overseeing our finances, everything fell into place. There was accountability and when you know someone is keeping track, you ensure things get done properly. It’s been three years and the systems they put in place are still working well. Our business is in a much better position today.
Quoted word for word from our clients. Read more client words →
Questions owners ask us
What share is too much for one customer?
There is no fixed number. When losing one customer would threaten the business, the dependence is too high. Many advisors worry above a third of sales.
How do I raise prices with a large customer?
Use the contribution margin and the cost of serving them, and prepare for their alternatives. Offer a structured, evidenced increase rather than a surprise.