A tall power lifter is at a disadvantage. Compared to a shorter competitor, she has to move the weight farther, thereby increasing the amount of work performed. (That formula by the way is Intensity=Force (or weight) x Distance/Time)
Sales is similar. Except in this case, Intensity= Size of the Sale x the Number of Transactions/Time to close.
As in fitness, intensity will accelerate growth. So:
– If your price is low, you have to sell a lot, quickly.
– If your sales cycle is long, you have to sell at a high price to either a lot of customers, or a lot of times to the same customer
– If your market is narrow, you have to sell high and sell quickly.
Of course, the ultimate business model would be to sell at a high price to a broad market, repeatably, very quickly. That, however, is practically, sociologically impossible. Apple may come close, but it is really only a narrow market that buys the latest iphone as soon as it comes out, and even then it is only every 6 months.
The real goal is to design the best model for your products and services, and then work to improve it. It doesn’t matter your disadvantage. You can still create intensity, and with it, growth. And growth is envied.
Likewise a tall power lifter may be disadvantaged, but who wouldn’t mind being a few inches taller?
HT to Jacob.