So, what is the best business decision you can make?
As soon as humanly possible, stop winning on pricing alone.
Quit focusing on “owning the market share” and start focusing on “owning the market profitability”. The best business decision you can make is to uncover ways to deliver a premium service that justifies much higher profit margins.
When we just start out, most of us need to win on pricing.
It is the only thing we have. But when you start winning on the value of your creations and the profit margins they garner, then you really are starting to win.
Focusing on value can help you do more than win market share. It can help you win the Market’s Profit Share.
Walmart owned merely 3% of it’s market share and nearly 80% of the market’s profit share.
Apple owned about 7% of it’s market share and still owned about 80% of it’s market’s profit share.
Wrap your head around this!
Seth Godin talks often about focusing on your craft, and not short-changing your work by suggesting that “it will only take two hours”. Dan Norris encourages us to focus on building and creating good things.