The Scorecard: A Strategic Review

A Year of Refinement

In 2024, a significant shift marked a change in our strategy. For the first time in our history, we formally addressed low-performing Industry accounts with a new standard: "Sunsetting". As this process required time to complete, we now expect fewer sunsets moving forward, as low-quality agreements have largely been purged from our ecosystem.

Optimizing Our Portfolio Sunsetting is a necessary evolution. By moving volume from underperforming accounts to our stronger partnerships—typically under the same carrier—we improve margins and reduce friction from low-effort anchor and carrier relationships. This allows us to focus our energy on partnerships that align with our long-term goals rather than managing stagnation.

Renegotiations: Injecting New Momentum. We view renegotiations as the "pumping of new blood" into an Industry account. This process rewards the anchor, the Partner, and the existing business with various improvements. We often dedicate more time to renegotiations than any other initiative, generally delivering over 11% improvements on updated agreements.

The Scorecard Overview This article is our way of looking at the big picture. We are delivering accurate statistics from the past year, covering sunsets, closures, and new wins such as BFAM. While specific internal lessons remain in-house, we share these results to provide a clear view of our trajectory.

Navigating Competing Principles We operate on two principles that are often in competition:

• High-Performing Industry Accounts (Quality)

• Strength in Numbers (Quantity)

Increasingly, our focus is leaning toward quality over quantity. Managing 200 different contracts is a mental impossibility. As we’ve all learned, two great Industry accounts are more valuable than ten average ones.

Learning and Improving. If we don't learn from the past, we cannot improve the future. By asking the right questions, we aim to sign fewer low-quality contracts moving forward, and thus reduce the percentage of Sunsets. We may Sunset more in sheer numbers, but expect it to be a smaller percentage of the overall Industry account number. Our main priority is securing better Anchors, fostering stronger Aagreements, and improving the ecosystem we all rely on.

Strategic Growth New Industry accounts remain the lifeblood of this business. However, they are never rushed; they are carefully planned and "baked in the oven" to ensure they are fully prepared to contribute to our long-term success.

2025 By The Numbers:

• New Industry Accounts: 15

• Renegotiated Industry Accounts: 13

• Sunset Accounts: 7

• Closed Accounts: 8