GoKawiilEntrepreneur op-ed: Revenue growth can mask unprofitable customers, CFO warns
A financial services CFO writing for Entrepreneur argues that revenue figures alone don't reveal which customers are actually profitable. Two accounts generating similar revenue can produce very different economic outcomes once late payments, servicing costs, discounts, exceptions and credit exposure are factored in. The author cites examples across manufacturing, software, distribution and consumer businesses where high-revenue customers quietly drain more resources than they return.
GoKawiil's interpretation of the reporting above, not reported fact.
The piece suggests that companies chasing top-line growth without tracking true customer costs risk mispricing products, misallocating sales effort and rewarding unprofitable relationships. It implies that tying pricing, payment terms, service levels and customization more closely to actual customer value could improve profitability, though this is presented as the author's recommendation rather than a proven outcome. Younger or growth-focused businesses, the author suggests, may be especially prone to treating all revenue as equally good.
- Revenue measures business volume, not profitability or value delivered.
- Hidden costs like late payments, servicing demands and discounts can erode apparent high-revenue relationships.
- Aligning pricing, terms and service levels with true customer value can guide sales and product strategy.
Source: entrepreneur.com — Erik Clarke, 2026-10-23
Published there as: “Before You Celebrate Revenue Growth, Understand What Your Customers Really Cost You.”
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