Competition is increasing along with pressure on price, which can lead to a race to become the lowest price. However, discounting prices further to keep customers only prevents you from being competitive in the future because you have lower margins to invest.

With companies having fewer but larger customers it means that the top 10-20 customers for a company typically represent 60-80% of revenue and profit. Losing one of these customers can have dramatic impacts on a company - adding still further pressure to discount prices. 

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