I have a sales management exam tomorrow. Please answer my exam question.?

Hello, If you answer my question I will be very happy.

Question:
WHY SHOULD A COMPANY BE CONCERNED ABOUT THE PROFITIBILITY OF ITS CUSTOMERS?

The profitability of a customer impacts their suppliers in many ways.
It assures the supplier that they can pay for the products they purchase, in a timely manner.
As the customer grows, due to profitability, their need for products increases, providing more sales to the supplier.
The more successful the customer, the greater the opportunity for referring other customers to the supplier.
This is how long term, profitable relationships thrive.

The profitability of ones customers will ultimately result in Higher volume purchases, Loyalty to your product or service, referral business

(Smirk). If the answer to that question is not obvious to you, you don't belong in sales management (or any OTHER management position, for that matter.)

Profitability of customers will affect their spending power and in effect, the earnings of the company. So more income for customers equals to more income to the company.

I love test like these. I wouldn't work a company that made me take such a retarded test.

But, to answer your question, if your client is not profitable, then their sales from you will dwindle or dry up. It is pretty self explanatory.