There is No Profitable Status Quo in Business

I said to a CEO “there is no profitable status quo in business.” He asked me to imagine standing on a street corner where we live. The traffic and the people are passing by. He said “Standing there is like maintaining the status quo in my business. I am not losing ground.”

I said “you may think that not moving is the same as not losing ground. Not so. Many of the people literally passing you by are on their way to companies where they will pass you by in revenue and profit growth; in improvements and innovation; in client retention. Standing still will pretty quickly mean you are losing ground.”

Standout Investments that Return Big Payoffs

Revenue and profit increases require focus and clever investments. Keep doing what you’re doing and you’ll get what you’ve been getting—the same revenue and the same profits.

Let’s look at the 5 top investments your company needs to make in order to increase high-profit revenue.

The Highly Profitable Practice of Alignment

How well are the price/value ratios of your offerings aligned with your target buyer segments? In other words, are you selling the right offerings to their most likely buyers? Or are you missing this important link?

Quick review: Your buyers fall into segments: Testers, Regulars and Enthusiastic Fans. Each of the buyers gravitates to a particular price/value ratio which is represented by your Common, Uncommon or Exceptional offerings. These relationships are illustrated on the GO Curve.

Are You Voluntarily Handcuffing Your Company?

Intellectual property (IP) has no boundaries. Yet too many companies handcuff their revenue growth with old choices, ironclad processes, strict policies, predetermined offerings, restricted views of their clients and their own baggage.

Quality Covers Costs, Value Increases Profit

You will be buried under an avalanche of advice if you search or ask “How do we price our products and services?” The B-school and CPA approach is costs+profit=selling price.

Buried in approach is the idea that costs will reflect the quality of the inputs. The higher the quality, the higher the price. Low quality offerings get priced lower.