Marketing Windows: Amazon and Battlestar Gallatica
Cockroach Companies

A Winning Business Model?

You're starting a new company.  You decide to focus on maximizing profitability for each customer.   You do this by charging as much as you can while delivering as little as possible to each customer.

30-40% of your revenue is dedicated to overhead to ensure that no customer gets more service than you are contractually obligated to give.   You charge 15% more than competitive solutions for your largest customers.   For your mid-sized customers, you raise their prices 8-15% if they use your services (to maintain those profits).  

For your smallest customers you focus only on the top percentage which will barely use your service while charging as much as you can.  If they do start using your service, you immediately drop them as a customer.    Some of them go bankrupt, but that's o.k.

How well do you think this new company will do?  


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