Andy Neary explains that claiming an industry niche via access to a carrier or product is fragile—competitors can replicate access and then compete on price. True defensibility comes from building industry-specific coverage (example: final-mile space) that offers protection beyond price, making it harder for competitors to win clients merely by undercutting rates.
Chapters
I think that's a message I want people who are listening to this to hear. You could say you have an industry niche because you have a certain product, right? Oh, we're, we're working with this carrier who loves this, this, this niche. The problem with that model is then anybody can get access to that carrier. Once they do, you don't have a niche anymore. You don't have a competitive advance. Right. What you guys did, though, is you've actually built coverage specific for that industry. Yes. And to your point, you're a competitor. You want to come in and chip away at the B3 client, the book of business. All you can compete on is price. But what you're forgetting is they built coverage specifically for the final mile space. So you can go get that price, Mr. Final Mile Career. But now you could be dealing with a complete lack of coverage. That's right. It's not about price, it's about protection.