Don’t Be The Low-Cost Option

When you are the low cost option you attract the worst kind of customers, especially when you are selling to other businesses.

And you are never happy because it is no fun working on thin margins, and having cash slow that is bare minimum to survive.

With low cash flow you can’t invest in growth and good people, and may continue to work with a lean team, doing a lot of your work yourself, having no time to think about growth.

Those buying based on who offers the lowest cost option are almost always looking for a deal, and they can jump ship whenever a better deal comes along. Good for them, not so good for seller.

They also need a lot of support usually because they value money over time and hence to save money they don’t have much support in the form of a team at their end.

Your price is also an outcome of what you sell, but this does not change the behavior of low cost buyers so better to get into a business or sell something where you don’t have to sell at a low price.

Know that price can be a competitive advantage. But be smart enough to understand the difference between being competitive and racing to the bottom.