Dear Catalog CEOs:
Let me ask you a question ... and I ask this because you pummel me with this issue all of the time (as do the experts out on Twitter):
Which of these two businesses would you rather own?
- A $30,000,000 annual net sales business that generates $3,000,000 of annual profit?
- A $50,000,000 annual net sales business that generates $2,000,000 of annual profit?
I'm not a fan of market share arguments ... they represent MBA-style theory reserved for the battle between Google and Facebook or Wal-Mart and Target or McDonalds and Burger King.
When you own 0.03% of the market, stealing market share is irrelevant.
Instead of stealing market share, think what you could do with a million additional dollars of profit each year?