If someone caters to the top of the market – expensive hotel rooms, high-end real estate, luxury travel, consulting services of some kind to businesses that need it and can use it, financial services for the wealthy – one might be tempted to figure out some possible ways to cut costs and become more efficient.
The idea is that if you can save a dollar, you make a dollar without having to find any new business.
Resist this urge at all costs.
Your goal shouldn’t be to reduce costs; your goal should be to increase them and be worth it. Create an experience that is worth paying for.
When you save money on service, you simultaneously become much more similar to a competitor who is more efficiently serving the middle of the market. You choose to become a commodity, competing on price. Clients who are attracted by price are also attracted to average; they’ll never be happy with anything no matter how amazing it is, unless it’s more affordable than it should be.
Consider all the ways you serve your customers, and make them more expensive to execute, not less. Your customer loyalty and your market share will both grow. People who can afford to pay for service often choose to pay for service.
When you make things more efficient, you are inadvertently taking a step towards average.
When you make things more expensive, you are motivated to engage your client and change her for the better.