XL EagleMFC (Most Favored Customer)
MFC stands for Most Favored Customer. The most favored customer is the commercial customer or group of customers who get your best price or discount. When you apply for a GSA schedule, you disclose your commercial sales practices, often called CSP, and identify that customer.
GSA uses this to negotiate your schedule price. It may also name a tracking customer, and under the price reductions clause, if you later give that customer a better deal, you may have to lower the government's price too. Firms under transactional data reporting follow different rules.
Why it matters to a small contractor
Before you apply for a schedule, know your discounts by customer type. Promising GSA a price you also beat for local customers can trigger price reductions later.
Example
A supply company gives its biggest commercial buyer 12 percent off list. GSA negotiates 14 percent off list for the schedule, using that buyer as the tracking customer.
MFC: common questions
What is CSP?
Commercial sales practices. It is the disclosure of your pricing and discounts to commercial customers, used in GSA schedule negotiations.
Do I always have to beat my best customer's price?
Not always. GSA looks for the best price it can reasonably get, and differences can be justified by different terms or volume.
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