Scarcity Creates Value

by Ray Reuter on October 10, 2010

A recent post by Seth Godin really struck a chord with me.  Whatever you are doing, identify what the scarce resource is … and by the way, it is usually not money.  For example, if you are climbing Mount Everest, the scarce resource is warmth and weight.  That’s what you care about—not how much the sleeping bag costs.  In many businesses, the scare resource is a trusting relationship, not the product itself.  For others it might be time.  Still others, the “experience” of the transaction or sale.

Consider your business … what do you offer that your competitors do not?  If 500 similar businesses can provide what you do, don’t expect to get paid a premium.  Your value increases in proportion to providing what others cannot.

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