Jeff Bezos, Amazon’s chief and founder, recently told the US magazine Wired:
“There are two ways to build a successful company. One is to
work very, very hard to convince customers to pay high margins.
The other is to work very very hard to be able to afford to offer
customers low margins. They both work. We’re firmly in the
He added: “We’d rather have a very large customer base and
low (profit) margins than a smaller customer base and higher margins.”
Mr Bezos added. “Our vision of a perfect customer experience
is one in which our customer doesn’t want to talk to us.”
Low profit margins, mass customers: Amazon.
Higher margins, smaller customer base:Apple and most MLM companies.
Your job: “Work very, very hard to convince customers to pay high margins.”
How? Know what’s important to your customers. Then, show them the value of
the product or service you offer, based on what matters to them.
That’s what Apple does. Not everyone buys the iPhone, but enough people do
to make the company uber successful. And customers can’t stop raving.
You up for it?