---
title: "Escaping a dominant supplier"
description: "The sequence Caudwell used to survive the loss of his Motorola contract and de-risk the business."
canonical: https://tomsharman.com/bookshelf/love-pain-and-money/escaping-a-dominant-supplier/
updated: 2026-11-03
---

# Escaping a dominant supplier

> The sequence Caudwell used to survive the loss of his Motorola contract and de-risk the business.

John Caudwell's framework, from Love, Pain & Money, pp. 132 to 139.

Framework 4 of 7 from [Love, Pain & Money](https://tomsharman.com/bookshelf/love-pain-and-money/index.md) by John Caudwell. Category: Offers and pricing.

## The steps

1. **Keep supply alive.** Reverse the earlier deal by getting service providers to buy Motorola phones for him, with a guarantee of confidentiality.
2. **Look at the remaining five percent.** Examine the smaller suppliers, such as Nokia and Panasonic, for an alternative.
3. **Pick a challenger with weak distribution.** Choose a supplier with a small share, like Nokia at two percent, that lacks aggression, sales and distribution.
4. **Pull the decision maker onto your ground.** Invite the boss to see your operation so you control the setting and show your distribution power.
5. **Negotiate for volume.** Agree a low unit price, such as £50, with creative cash and short term credit terms.
6. **Cap dependence.** Never rely on any one company for more than 10 percent of business.

## Where it comes from

From chapter: Chapter 16_SNAKES IN THE GRASS, pp. 132–139

## The animation

24 seconds, 4:5, no sound.

- MP4: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/love-pain-and-money/escaping-a-dominant-supplier.mp4
- MP4, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/love-pain-and-money/escaping-a-dominant-supplier-dark.mp4
- Still: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/love-pain-and-money/escaping-a-dominant-supplier.png
- Still, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/love-pain-and-money/escaping-a-dominant-supplier-dark.png