Competing on price is easy, but building loyalty through belief and focus creates lasting businesses.
You Can’t Always Win on Price, So Win on Belief
Discounts are tempting.
They’re simple. They’re measurable. They give fast feedback. Drop the price and something usually moves.
I’ve approved more discounts than I care to admit. Sometimes they were necessary. Sometimes they were lazy. And sometimes they quietly trained customers to care about the wrong thing.
Here’s the hard truth most teams avoid: if your only lever is price, you’re already late.
The Middle of the Curve Is Crowded
Most companies aim for the middle.
Reasonable price. Broad appeal. Safe messaging. Products built to offend no one.
On paper, it looks smart. Bigger market. More customers. Easier growth story.
In reality, the middle is brutal.
You’re surrounded by competitors doing roughly the same thing, with similar costs, similar features, and similar promises. Someone will always be cheaper. And when they are, your margin takes the hit.
I’ve seen this play out across industries. Software. Consumer goods. B2B services. The pattern doesn’t change.
Discounting Is a Short-Term Fix
Price cuts solve today’s problem by creating tomorrow’s one.
They attract buyers who leave as soon as the deal ends. They pull forward demand instead of building it. And they make it harder to raise prices later without backlash.
Worse, they blur your identity.
Once customers see you as “the cheaper option,” it’s hard to be anything else.
When You Can’t Compete on Price, Compete on Belief
Some companies stop trying to win everyone.
Instead, they get very clear about who they’re for.
Not demographics. Belief.
These businesses don’t chase the mass market. They speak directly to a smaller group that feels ignored, misunderstood, or dismissed by mainstream options.
And that changes everything.
The Outsiders Are Loyal
There’s a group in every market that feels overlooked.
They’ve tried the big brands. They’ve read the marketing. They didn’t feel seen.
When a company finally speaks their language, something clicks.
These customers don’t ask for discounts. They ask to be heard.
Once they trust you, they stay. They share feedback. They bring others like them. Over time, they grow with you.
That kind of loyalty doesn’t show up in a single quarter. But it compounds.
Mass Solutions Versus Clear Proposals
Many businesses try to be everything to everyone.
Feature-heavy products. Broad positioning. Endless use cases.
The pitch sounds impressive. The execution is exhausting.
Contrast that with companies built around a narrow idea. One problem. One point of view. One clear reason to exist.
These businesses don’t explain themselves to everyone. They don’t need to.
The right people get it immediately.
Specific Beats Broad
I once worked with a product team under pressure to expand their offering. Sales wanted more features. Marketing wanted broader appeal.
The founders pushed back.
They doubled down on the original user. The one who wrote long emails. The one who asked thoughtful questions. The one who felt ignored by larger players.
Revenue didn’t spike overnight. Retention climbed. Support costs dropped. Referrals increased.
Two years later, growth looked “sudden.” It wasn’t. It was earned.
Philosophy Is a Filter
When you lead with belief, you repel as much as you attract.
That’s a feature, not a flaw.
A clear philosophy filters customers, partners, and even employees. It reduces friction because expectations are set early.
People who don’t agree won’t buy. That’s fine.
People who do agree will forgive mistakes. They’ll give feedback instead of leaving. They’ll stay when cheaper options appear.
As a CFO, I value that more than short-term volume.
What This Looks Like in Practice
This isn’t about slogans or mission statements.
It shows up in choices.
- Which features you refuse to build.
- Which customers you say no to.
- How you respond to criticism.
- Where you invest when resources are tight.
These decisions signal who you are.
Customers notice. Even when you think they don’t.
The Financial Side People Miss
Focused businesses often look smaller early.
They also tend to have better margins, lower churn, and stronger pricing over time.
Loyal customers cost less to serve. They buy more often. They don’t require constant incentives.
You trade speed for stability.
That’s a trade many boards underestimate until they’ve lived through a few cycles.
Growth That Sticks
When you reach the right audience, growth feels different.
It’s calmer. More predictable. Less reactive.
You’re not chasing the market. You’re building with it.
The audience grows because the idea spreads, not because the price dropped again.
That’s the difference between volume and value.
Book Recommendation
“This Is Marketing” by Seth Godin is widely known, but the quiet insight about serving the smallest viable audience is where the real value sits.
Your Turn
If you stripped away discounts, what would customers still choose you for?
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