What business are you actually in?

Philip Morgan

I drove a lot of crappy cars earlier in my life.My first was a 1969 Jeepster Commando. The floorboards were rusted out and covered with 1/4" steel plates, and I installed lap belt seatbelts in it myself with used belts from a junkyard and bolts from the hardware store.My second car was a 1984 VW Jetta that wouldn't start if the motor was heated up until a mechanic modified it with a solenoid and extra-thick wire that bypassed the stock fusebox.As a result, I've developed a deep aversion to having to repair cars.If a car that I own has to be repaired more than once per year, I trade it in for a new one.In fact, I've gotten to the point where I don't want to own a car (and the inevitable maintenance headache it represents) at all.I essentially "subscribe" to a car by leasing it for 2 years and then trading it in for a new one. During the warranty on a leased car, the dealer repairs pretty much anything that could happen to it and does all the required maintenance for no money out of pocket.I know that some people think I am crazy for doing this. I pay a real premium compared to buying a car, paying it off, and keeping it for 10 years.Why would I willingly pay this premium when there's a cheaper way to have access to a car? Am I dumb and unable to do simple math?No, I can do simple math just fine. :) I know full well the premium I'm paying to asymptotically approach the objective of a 100% reliable, maintenance-free car.I do it because it's worth it to me. The difference between buying something like a 2-year old Toyota and keeping it for 10 years and what I do is insurance. Insurance against needing to be somewhere and not being able to be there because of car issues. Insurance against needing to do much at all to maintain the car.You get the picture, right?What business are you actually in?Are you selling code or are you selling insurance?Of course, to a degree, you're doing both.But if your custom software had a built-in insurance policy, who would pay more for it? How much more would they pay for it?There are buyers like me out there. You find them by specializing. Identifying a strong market position is step #1. Learn how here: http://thepositioningmanual.comTalk to you soon,-P