The REAL Reason Why Your Business Is Not Growing
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- The speaker talks about the danger of being stuck in the middle.
- There are two options: be like Rolls-Royce or Toyota.
- Being in the middle means being too expensive to be cheap.
- It also means being too cheap to be expensive.
- This position has no advantages, only risks.
- It’s not a sustainable strategy for long-term success.
- The speaker prefers higher margins for less stress and growth.
- Higher margins allow funding growth without outside investors.
- Their business model is customer-funded, using profits to grow.
- They avoid giving up equity or raising outside money.
- The goal is to push margins as high as possible.
- If sales decline but profits double, that’s okay.
- Raising prices can be done aggressively if clients pay.
- The speaker doubled prices multiple times successfully.
- It’s not about small percentage increases, but bold moves.
- If clients are willing to pay, big jumps are possible.
- Competing on price alone is not sustainable long-term.
- Small businesses can be undercut easily by larger ones.
- Large companies use loss leaders to drive out competition.
- Loss leaders sell at a loss to eliminate rivals.
- Walmart is a prime example of this strategy.
- Walmart’s goal is to dominate markets and squeeze suppliers.
- They buy huge quantities, then pressure suppliers for discounts.
- Small businesses often go bankrupt under this pressure.
- Walmart keeps prices low by squeezing margins everywhere.
- They put small competitors out of business first.
- Then they dominate the market with little profit margin.
- Consumers get lower prices, but at the cost of small businesses.
- The Walmart model benefits the big company, not small vendors.
- The speaker prefers a model with higher margins and better customers.
- Being stuck in the middle is a decision, not an accident.
- Many businesses end up there by chance, but it’s a choice.