Accountants Quote by Fred Reichheld
“Too many companies these days can't tell the difference between good profits and bad… By now you're probably wondering how in heaven's name profit, that holy grail of the business enterprise, can ever be bad. Short of outright fraud, isn't one dollar of earnings as good as another? Certainly, accountants can't tell the difference between good and bad profits. They all look the same on an income statement. While bad profits don't show up on the books, they are easy to recognize. They're profits earned at the expense of customer relationships.”
About This Quote
Source Book: The Loyalty Effect by Fred Reichheld, 1995
Good profits sustain value and relationships; bad profits sacrifice customers for short‑term gains.
In simple terms: Good profits help; bad profits hurt.
Key Takeaway
Prioritize customer‑centric growth.
Themes
profitability
customer relations
ethics
Mood
cautious
reflective
Type
business
ethical
When to use this quote
- pricing strategy
- product development
- customer service
- financial reporting
Key Concepts
sustainable value
short‑term gain
relationship capital
Questions to Reflect On
- How can you identify profit sources that erode customer trust?
- What metrics reveal the health of customer relationships?
A Different Perspective
Bad profits may boost short‑term numbers but damage long‑term brand trust.
