Always compete with high margins.
ADAGE
Avoid Low Margins
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RESPONSE
Always compete with high margins. Never pursue a competitive strategy contingent upon always being the lowest-price supplier. Never assume you’ll make it up in volume. Always assume the competition will match or better any price cut. Destroy low-cost business models. Exit commodity markets or dominate niches via superior positioning. Never enter a price war unless you have a realistic end game that involves increasing your margins. And never sell for less than your cost. Never. Walk away from the customer, the market, the industry, and the opportunity before selling for less than your cost. God always expects a return on His investment, and so should you. The greater the profit, the more opportunities you have to bless others, whether by giving, hiring, or buying better equipment. Profit is not your enemy. Greed is.
SCRIPTURE
Matthew 25:27 “Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.”
QUESTIONS
How do the Scripture(s) apply to the business adage?
What do you do if you’re in a low-margin industry?
Would you pay a Christian vendor more for a product than a secular vendor with a cheaper price? Why?
Is there a connection between secular and low margin? If so, what is it?
Is low margin sinful? How?
An unethical competitor enters your market and starts undercutting your price. He’s selling at a loss in order to drive you out of the market. What do you do?
DOWNLOAD
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