Bill Canady argues that companies should stop chasing low-margin revenue and instead focus on reclaiming idle capacity. Freeing up 30% of unused capacity is worth three to four times more than the low-margin deal, making it the smarter profit play.
Part 3, and this is the one that actually changes minds. Reframe the question. The question is not, do we want $4 million of revenue? Of course we want $4 million of revenue. We're not crazy. We're in this money thing to make money. But the real question is, what would we do with 30% of our capacity if we got it back? And is that worth more than the $4 million at zero margin? My sense is yes. It's always been yes for me. Can't imagine it's not going to be yes for you. And the answer is yes by a factor of 3 or 4, essentially every time. As I said earlier, it's always been a yes for me.
