Business Quote by Ray Kroc
““I was about to lose one of my biggest accounts, Walgreens, the people I had created a tremendous amount of business for and to whom I was selling five million cups a year. Fred Stoll told me in strictest confidence that a former Walgreen executive who had a lot of pull in the top offices of the company had gone into the paper cup business with a competitor of mine, and he was going to be given all of the Walgreen trade. The rationale would be that this competitor was selling for five percent under my price. I explained this to John Clark and tried to get him to go along with offering Walgreens a price break—after all, they paid their bills on time and there was promotion value in having a big company like that use your product. But all I got was a tongue lashing.””
About This Quote
Source Interview: Business memoirs, 1990s
A major client threatened to switch to a cheaper competitor, prompting a plea for a price discount that was rejected.
In simple terms: Losing a big client leads to seeking price cuts, but the request was denied.
Key Takeaway
Consider value beyond price when negotiating.
Themes
business
competition
negotiation
client relationships
Mood
strategic
reflective
Type
advice
case study
When to use this quote
- sales meetings
- contract renewals
- price negotiations
- client retention
Key Concepts
pricing strategy
loyalty
market dynamics
Questions to Reflect On
- How can you demonstrate value without lowering price?
- What alternatives exist to a price cut?
A Different Perspective
Discounts may erode perceived value and hurt long‑term margins.
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