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Sairaj Kadam
Entrepreneur • 8m
Do you think that LOW COST can generate HIGH RETURNS? Don’t believe this is possible? Well, it is. Take the example of Dollar Shave Club. They started with a simple idea, offering affordable razors through a subscription model, cutting out the middleman. With a quirky marketing campaign and a budget-conscious strategy, they scaled rapidly and were eventually bought for $1 billion. So, what should you consider when aiming for HIGH RETURNS with a LOW COST model? 1. Focus on Value, Not Price: You need to deliver something that feels valuable, even if it doesn’t cost much. This is what Dollar Shave Club did—offering convenience and a unique customer experience at a low cost. 2. Lean Operations: Keep your overhead as minimal as possible. Whether it’s outsourcing certain functions or using technology to automate, be smart with where you invest. 3. Effective Marketing: You don’t need a huge budget to create buzz. Dollar Shave Club used a viral video campaign that skyrocketed their growth. Creativity goes a long way. 4. Scalability: Ensure your business can grow without a significant increase in costs. Subscription models or digital products are great for this because they have low incremental costs as you expand. So yes, LOW COST can lead to HIGH RETURNS, but only if you’re smart about the value you provide, how you market, and how efficiently you run your operations.
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