Examples of Small Customers

Small Customers purchase about
5% of the market volume.

Example 1: Leisure travelers are the main users of restricted tickets. They were targeted in a recent price increase by Delta.
(Year 1995-SIC 4512)

Explanation: Leisure travelers are the Small Customers in the airline industry. Most purchase infrequently.

Example 2: Over the past five to ten years, retailers have begun to consolidate purchasing power through the formation of buying groups. Buying groups consolidate purchase volume and negotiate favorable purchase prices and service levels from suppliers. Carpet One is the largest buying group in the carpet industry, with approximately 370 members and 500 storefronts.
(Year 1996-SIC 2273)

Explanation: Buying groups are almost always made up of Small Customers. In this case, the average member of the buying group, Carpet One, has less than two stores. If the buying group is cohesive and able to influence most of the purchase decisions of its members, it would likely be a Large or Very Large customer. Most buying groups do not have that control over their members and are more likely to be Medium Customers due to their limited effective control of their members' purchases.

Example 3: Pabco's calling program has focused on Small Customers in the market, those that buy less than 8 million feet of wallboard annually. These customers include Pabco's vertically integrated distributor, Pacific Supply, as well as those customers that operate in outlying, rural areas.
(Year 1995-SIC 3270)

Explanation: This gypsum manufacturer specialized in serving the Small Customers in the marketplace.

Example 4: In the past year, Coca-Cola has embarked on a special drive to occupy almost every nook and cranny in the US: schools, churches, nail salons, karate studios, rehab clinics and softball fields. Coke believes domestic markets aren't yet mature. Coke is "decomposing" every city, town and patch of countryside in the US by age, income, beverage preference, even packaging preference.
(Year 1997-SIC 2086)

Explanation: Coca-Cola is seeking to increase its penetration with the Small Customers in the market.

Example 5: Due to increased competition from large video chains, Video Vault focuses on hard-to-find cult movies.
(Year 1990-SIC 7841)

Explanation: Video Vault is focusing on Small Customers in the marketplace, those who rent cult movies.