The customer is always right, until they are not. Then you need to distance yourself from them.
Burning bridges is a historically bad idea, so don’t do it. But if you have a customer who is simply wrong (in how they do business, how they treat you, how they pay their bills, what they ask for or insist upon) you have the choice to step backwards and make some distance between you and them.
Ironically, by lowering expectations and goals, room for growth can be developed. It might not manifest itself in sales growth, but rather growth of integrity, spirit, and positioning.