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The SALES THREAT represented in the table in Sam’s article in the 10/15/09 issue is that 50% of the company’s sales are to one customer, and 80% to the top two cusomters.
Such a high concentration of sales to such a small number of customers puts the business at HUGE risk. Plus it puts the business in a very poor position if the high volume customer press them for lower prices, extended payment terms, and other margin and/or cash flow eroding conditions.