What happens when your business category starts getting popular?
Do key employees jump ship and start their own business? Competing against you. Trying to steal your customers.
You had a good business. It was growing fast.
Then a bunch of “copycat” businesses started popping up all over the place.
More competition. A bunch of guys slugging it out over price. Prices took a nosedive. Profits tightened.
But you don’t have to play in the price war. Do you?
Businesses can die a quick death on the price war battlefield.
Why not serve the more expensive end of the market? Where it costs more to play, but there isn’t as much competition. Profits are higher.
On the low end of the market, all the businesses look the same. From the customers’ perspective, on the low end, it doesn’t make much difference which business they buy from.
Might as well buy from the cheapest provider with good reviews. Can you see that?
On the high end of the market, it’s a different story . . .
Customers are willing to pay for bigger and better. Many want to pay more.
Even though the dollars you invest are more, the business is safer. More protected.
The profits are higher. You, as a business person, can make your business stand out more easily too.
Think about it.