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Some of your biggest accounts are your most expensive relationships.

Revenue is not profit. When freight, handling, returns, and service cost are fully allocated back to each account, the profitability picture changes materially — and the decisions that follow are very different.

The Problem

Gross margin by account is not true profitability. Most organizations never see the difference.

The distributor with $2.4M in revenue from a single account looks like a win — until cost-to-serve is fully allocated. Freight, returns, customer service touches, order handling, and dedicated inventory all have real cost. When those costs are attached to the account that drives them, net profit often tells a completely different story.

"On average, 12–18% of accounts in a B2B distribution portfolio are net-negative after full cost-to-serve allocation. Most leadership teams have never seen those numbers."

What We Deliver
What We Deliver
Industry Vertical
Industrial · Manufacturing · Trades · Healthcare · CRE · Government · MRO · Automotive · Energy
Peer margin benchmarking within each vertical
Revenue & Margin Band
Strategic · Growth · Transactional · At-Risk — tiered by actual behavior, not relationship history
Tier misclassification is where the money hides
Buying Behavior
Order frequency · basket size · category breadth · seasonal patterns · channel mix
Who is growing, who is drifting, who has already left
Price Sensitivity
Override dependency · discount frequency · contract compliance · price acceptance by category
Not all customers are equally elastic
Cost to Serve
Freight · returns · service touches · order handling · dedicated inventory · credit risk
Gross margin is not profitability
Churn Risk & Lifetime Value
Purchase recency · frequency trend · wallet share gap · forward CLV by segment
The signal is always in the data — 90 days before it hits revenue
  • True Net Profitability — Every account ranked by net margin after full cost-to-serve. The number your current reporting doesn't show.
  • Profitability Scatter — Revenue vs margin rate by vertical. Instantly surfaces who to reprice, restructure, or exit.
  • Bottom Decile Action Plan — Bottom 10% flagged with rep, vertical, last order date, and recommended action.
  • Wallet Share Gaps — What each customer could be buying that they aren't. Ranked by opportunity dollar.
Outcomes

What true profitability visibility produces.

12–18%

Accounts Typically Net-Negative

After full cost-to-serve allocation — across a typical B2B distribution portfolio. Most organizations discover this for the first time during this engagement.

200–400bps

Portfolio Margin Improvement

From repricing, contract restructuring, or exiting accounts that destroy value — within 12 months of implementing the profitability framework.

2 weeks

Time to First Insight

From transaction data upload to a full customer profitability ranking with cost-to-serve allocation and segment benchmarking.

Start the conversation

Tell us about your business and we'll respond within one business day.

Or email directly: mithaleshk@gmail.com

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Pricing Framework & Governance
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