THE LOW COST TRAP
I’ve known business owners that have made a strong marketing case for becoming and/or being the low cost provider… but it’s been my observation that the low cost position can kill a business.
The great low cost providers are vulnerable from multiple angles. Just when the system for lowering costs has been fully refined… somebody else inevitably comes up with a better system and cheaper suppliers. And as if this problem isn’t enough… these business owners find it virtually impossible to inspire their employees due to limited budgets, meager surroundings… and a constant need to recruit under-paid and under-appreciated workers.
Always remember, your clients and consumers can almost always find a cheaper way to get your products and services, and few efforts are less rewarding than trying to compete with the cheaper ways of those bottom-dwellers.
Stay away from the rock bottom.