Customer Concentration and Renewal Risk

A short contract manufacturing decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.

Contract manufacturing · concentration risk

One customer is 70% of your revenue. They are happy, growing, and pay on time. Their contract renews annually.

Given fact	Scenario data
Revenue from one customer	70%
Customer status	Happy, growing, pays on time
Contract renewal	Annual

How should you think about this?

Choose an action, then lock it in to reveal the reasoning. This is untimed practice.

It is fine as long as the relationship is healthyIt is a serious risk, and diversifying should start now while you are strongYou should raise their prices to capture more of the relationshipYou should ask them to sign a longer contract and stop worrying

Read the framework

How to Test a New Market Before Expanding

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