Everyone wants higher margins. But wanting it and earning it are two different things.
The businesses that consistently command a 3-5% premium over their competitors aren’t just lucky—they’ve built a culture around proving their worth. They know exactly what makes them better, and they have the data to back it up. Most competitors? They don’t. “We have great service,” they say, or “We’re reliable.” But saying it isn’t enough. You have to prove it.
In one of our businesses, we were able to show—down to the decimal—that we delivered 98% on time, in full, and complete. Others claimed great delivery performance, but we had the data. And customers paid for it. Higher reliability meant lower risk for them, fewer headaches, and a smoother operation. That’s worth a premium.
In another business, we prided ourselves on something as seemingly small as hinge thickness (shoutout to Al for that one). Everyone had the same hinge, but we knew the exact thickness, down to the fraction of an inch. Our competitors? They didn’t. That simple detail made us look like the experts and put a shadow of doubt on them. And when a customer starts questioning what else your competitor doesn’t know, you’ve already won.
But here’s the bigger point: you’re not just selling a product. Everyone has the same stuff.
You’re selling A.R.T.—Accountability, Reliability, and Trust.
• Accountability to do what you say you will.
• Reliability to be the vendor your customers can depend on.
• Trust that when push comes to shove, you deliver—no excuses.
Most competitors are just moving boxes. They’re order-takers, price-matching their way to the bottom. But the companies that thrive—really thrive—are the ones that build an organization-wide culture of defending their value. That means every person, from sales to customer service to operations, understands what makes you worth more and can explain it in a way that matters to the customer.
Because here’s the truth: If you can’t confidently defend why you’re worth more, your customer has no reason to believe you are.
Do A.R.T. well—at every level of your organization—and you’ll never look back. BS your way through it, and you’ll struggle forever.
Most competitors can’t answer why they’re worth more. If you can, price becomes a lot less of a fight.
It’s Up to You
Founder & CEO of LMS Strategies
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