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The final way to create more buyers than sellers is to bring down the cost of production so that you can offer something cheaper than everyone else but still make a profit.

Many small services businesses compete on price because they don't have the high overheads that large companies do. They can run their business from the spare room, piggyback on market trends, use cheap software, keep costs low – and still earn a better income than if they were sat at an expensive desk in the city with an expensive brand behind them.

Big businesses used to be able to dominate low prices because they could afford to invest in plant and equipment that would create a barrier to entry. But thanks to today's “collaborative economy,” most of the plant and other equipment is available to smaller businesses when they need it and it's not their problem when they don't.

There are many smart strategies or investments businesses can make to allow prices to stay low. A small business can buy a projector rather than hiring one from a venue each month. A bigger business might find an innovative way to run its warehouse from outside the expensive real estate of the city. A service provider might find ways to strip out a time‐consuming component of their process that doesn't impact on the value a client receives.

When Andrew Lloyd Webber came up with several hit stage shows he made a lot of money, which he then used to buy up the major theatres in London. Because he owns the property, he doesn't have to write shows nowadays; if you want to get your play to run in London you will have to use his property. He can also afford to run his own plays at a lower cost because he owns the venues.

There are three ways you can reduce costs and still keep your margins:

 Invest – Cleverly investing into assets that create a natural barrier to entry will enable you to reduce your costs and keep your margins. Owning your premises or buying equipment that is expensive to hire can be ways to keep prices lower.

 Refine – Looking for inefficiencies where there are costs that do not increase the value to a paying customer will keep margins wide while prices fall.

 Systemize – Using systems and technology rather than people is a powerful way to keep overheads low and margins high.

When establishing your business long term with a group of people, make sure they understand which of these four market positions you are strongest in. Ultimately people want to keep coming back to you because you offer them something fresh and new, you're their most trusted ally, you're super easy to deal with or you're relatively cheaper than everyone else.