Should I offer our biggest customer a deep discount to stop them leaving?

Question

Tyler Smith · Accepted Answer

Do not lead with a discount. First establish whether price is the actual reason for leaving and whether the relationship can still produce an acceptable return.

Ask the decision-maker what changed, what alternatives they are considering, and what would genuinely reverse the decision. A budget cut, acquisition, service failure, and strategic change require different responses. Some departures are not commercially recoverable, even when the relationship has been highly profitable.

Evaluate any rescue proposal against the account's remaining contribution, payment terms, delivery demands, and additional investment required. Include concessions that are easy to overlook, such as extra support, customization, extended credit, and priority access to your team.

Set negotiating boundaries before making an offer:
- What commercial terms remain acceptable?
- What customer commitment would justify a concession?
- What delivery promises can the business reliably keep?
- When will you stop negotiating and execute the exit plan?

If you make a concession, seek a defined commitment in return, subject to appropriate contract review. Do not exchange a permanent price reduction for a vague promise to reconsider.

Run the downside plan in parallel. Retention discussions should not delay decisions needed to protect cash.

The broader lesson is that profitable relationships can end. Saving this account may buy time, but it does not remove the need to diversify the customer base.