Examples of Large Customers

Examples of Large Customers

Large Customers purchase about
30% of the market volume.

Example 1: World has a limited distribution, so the retailers that carry its products never compete head to head with other retailers in the same town. World sells to retailers that don't go head to head with the big chains.
(Year 1996-SIC 2273)

Explanation: The retailers that World serves are likely to be Large and Medium chains, while the big chains in any location are likely to be Very Large Customers.

Example 2: Approximately 50% of Levitz's business is conducted with the company's top ten vendors. Similarly, 80% of the company's business is with its top twenty vendors.
(Year 1996-SIC 5712)

Explanation: The top ten vendors represent the Very Large Customers for Levitz's and probably for the industry as well. The next ten vendors would represent part of the industry's Large Customers.

Example 3: Carolina and Overnight were roughly similar in size. Both companies had a customer base that numbered approximately 100,000. However, 60% to 70% of both companies' revenues came from approximately 1,500 customers.
(Year 1985-SIC 4213)

Explanation: The 1,500 companies out of the 100,000 customers make up the Very Large and Large Customer group in this industry.

Example 4: Fifteen huge customers, such as IBM, DEC, and HP buy over 80% of the hard-disk drive industry's production.
(Year 1985-SIC 3572)

Explanation: These fifteen customers are Very Large and Large Customers.