Tuesday, March 31, 2009

I'm sick of bailouts

Has everyone lost their minds?

The #1 rule of marketing (and business) is that you must create value for somebody else. Not only create value, but create value such that others are willing to pay you for your offering because it is more valuable to them than the dollar amount of the price you are asking is to them.

For those who are not creating value that people are willing to pay for, the remedy of the market is for you to evolve, adapt or go away on your own terms. The worst thing that can happen is for somebody to come along and bail you out and give you false hope.

If you are not creating value for others such that they are willing to pay for it enough to keep you in business, then your demise is ensured and actually the best thing that can happen for all of us. Otherwise we are simply subsidizing products and services that we don't want enough to pay for--we're just doing it through higher taxes which is always less efficient than paying directly. If you don't want what I offer today at my price, why would you want the same thing tomorrow after a government markup?

I like you and all, but if I like what you offer I'll buy it directly, thank you very much. I don't want government bailouts that fool you into thinking I want what you are selling enough to pay for it. The latter is unfair to both of us, is just delaying your inevitable demise and simply enriching politicians who seek more power over you and me both.

Focus on your value proposition and we will all be OK.

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