The Main One Race That The Business Never, Ever Really wants to Win

Some races seem like they are fun to win.

The Astonishing Race. The Indianapolis 500. The Tour de France (even though they apparently cause you to urinate inside a little cup once you win, which does not appear very triumphant – unless of course they take part in the The Exorcist theme or something like that).

And a few races look — and therefore are – simply awful to win.

Like the race where companies claw, grab, jab and smack one another silly inside a no-holds-barred make an effort to end up being the undisputed low cost champion.

How can this be race so ghastly? Because, unlike the astonishing Race, the Indianapolis 500, or even the Tour de France, the race to become king or queen from the low cost empire is really a quick and miserable race towards the bottom.

Here’s why: the need to compete exclusively – or very considerably – on cost is extremely, very tempting. It’s like getting certainly one of individuals “Get free from Jail” cards from Monopoly except this can be a “Get free from the Sales Cycle” card, also it entitles a company to transform an expense sensitive prospect right into a signed, sealed and delivered customer. And also, since lots of sales agents have been in the client-making business, it is a handy card to possess.

Talking about customers: they LOVE you get one of individuals cards. And why should not they? Getting good at a lower price is fun.

But for the short-term, it’s fun for companies, too – because there is a new customer. Meaning new revenue. Meaning bills get compensated, purchases are created, the sacred wheel of economic turns for an additional day.


In the long run, that wheel slows lower, stops after which starts running backwards – and crushes its very own business beneath it. Why? Because whenever a business begins to compete exclusively or very considerably on cost, it typically achieves this (and here’s the truly important part) by neglecting its other core value propositions.

That’s, the company loses its grip alternatively things making it great. Actually, with time, it may outright forget it does other things efficient at all. All it will is provide the least expensive cost.

And thus its sales pressure – whether that’s one individual, or perhaps a whole troop of folks – begin using their “Get free from the Sales Cycle” card constantly. It is easy. It’s convenient. It really works (for some time).

And it is Risky.

The thing is, when the “we are by pointing out least expensive cost and little else” label is smacked on the business – through the business itself, by customers, or both – then it is not lengthy before that business’s choices become commodity. Customers no more see value distinctions between what that business offers and just what a rival offers. Such things as service, quality, speed, along with a whole barrel of other essential things fade from sight. It’s all regulated cost, constantly.