Collaborative Advantage: How to Build Partnerships Where Everyone Wins.
Tesla and SpaceX are winning because they are creating the most innovative products with the most value built in.
Because SpaceX developed reusable rockets they are able to achieve a cost advantage and offer their customers a better price for getting to orbit.
With Tesla because the cars are electric they enable their customers to charge their vehicles “free” when they also invest in a solar or other renewable energy capture system.
Again this offers customers cost savings and enables more room to capture profit and share savings.
Elon explains his powerful business philosophy around this at “The House Always Wins” talk:
“We believe in doing deals where both parties benefit, and, when there is an asymmetry or underperformance on our part…
Our goal in doing so is to build long-term trust.
If people know that we will not take advantage of them and aspire to fairness, even at our expense, they are much more likely to want to work with us in the future.“
Buying a car or solar system are two of the biggest purchases a person can make so trust is totally a factor at the individual consumer level.
Long term success is more powerful than trying to make a short term quick buck: Striving and succeeding in becoming the trusted brand in your industry will enable more sales to flow your way as more people trust you and your company.
Long term trust is essential for repeated purchases over time and creating customers for life.
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