The company soon learned it was losing money with one of its customers, a chain of specialty high-end shops, because of the low volume and high variety of products ordered and the small just-in-time deliveries the chain requested. Kemp’s vice president of sales called on the customer, explained the situation, and offered three options: accept a price increase and a minimum order size; eliminate its private-label ice cream, replacing it with Kemp’s standard branded product that was already being produced in efficient, high volumes; or find another ice cream supplier. When the customer inquired why Kemps was making the change, the VP responded that after 25 years, Kemps only now understood its true manufacturing costs and the impact of specialty production on its margins. The customer accepted a price increase of 13%, agreed to the elimination of two low-volume products, and agreed to accept full rather than partial truckload orders, thereby eliminating internal storage charges for Kemps. The changes produced immediate benefits of $150,000 per year, transforming this unprofitable customer into a profitable one.