High-End First: How Tesla Funded Innovation by Targeting the Affluent
Tesla started by creating desire via offering a premium product to the affluent.
This is the strategy Musk developed with Tesla when they decided to create the high end luxury Tesla roadster.
Below the strategy is explained with a diagram from the post How Tesla Will Change The World.
Tesla’s Business Plan involves three main steps:
- High-priced low-volume car for the super rich
- Mid-priced mid-volume car for the pretty rich
Then the profits from step 1 & 2 go towards step 3:
- Low priced, high volume car for the masses
It seems to me that this is a solid strategy for someone who is considering starting a coaching, consulting, and or membership site business as well.
By serving the most financially affluent first you can help your business create the financial stability and foundation needed to grow.
Once you have established the initial inertia of ongoing income for your business you can afford yourself room to hire and experiment more so you can instigate more innovation.
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