Your bank has just calculated the profitability of two small business customers. In both instances, the bank earned a monthly profit of $ 375 from both Detail Labs and The Right Stuff. Detail Labs had a large loan with the bank and small account balances. Its principals bought no other services from the bank. The Right Stuff had only a small loan, but used the bank for payroll processing and the firm’s checking account transactions. The principals also had checking and CD accounts with the bank.
a. What additional services or products would you suggest that the bank market to each of these customers?
b. Discuss how the source of profitability will influence the choice of services and products that you recommend.