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The Hidden Margin Killer: Cost-to-Serve and Why Your “Best Customers” May Be Unprofitable
February 11, 2026by Dr Dawkins Brown
Cost-to-Serve and Why Your “Best Customers” May Be Unprofitable Executive Summary Many organisations believe they know which customers, products, and channels are profitable. In practice, what leaders often know is gross margin, not true margin. The difference is cost-to-serve—the full set of costs required to sell, deliver, support, and service a customer or channel. Cost-to-serve...
