I had a realization as I was shopping today

In today’s report, I’m going to do something a little different.

Yesterday, I previewed Acuity Brands and highlighted how they are trying to sell lighting systems instead of individual lighting components. The goal is to move away from pure commodity pricing by selling a complete system.

That idea stuck with me today.

I tried to visit two local aquarium stores here in Fargo, North Dakota. Both were closed. That immediately brought yesterday’s report back to mind.

In a town like ours, it is incredibly hard to be price-competitive with online retailers when you are selling individual products.

So I started thinking about what I would do if I wanted to get into the aquarium business today.

I would not open a traditional retail store.

Instead, I would rent a small shop condo space. I would set up one or two very high-end aquariums. Then I would start posting videos, sharing photos, and getting local press around the kinds of aquariums I can design and maintain.

Rather than selling fish, pumps, or filters one at a time, I would sell complete aquarium systems.

Think half a dozen full setups, each defined by a clear look and price point. On top of that, I would bundle in optional monthly maintenance packages.

This approach does a few important things:

1. It minimizes risk. A small shop condo on a short-term lease is far easier to commit to than a full retail space with a multi-year lease.

2. It lowers the time commitment needed to get started. It would be totally feasible to start this as a side business wheres that’s hard to do with a full retail shop setup.

3. It reduces price pressure because the system itself is proprietary and hard to compare directly online.

For an aquarium business, a systems-based approach feels like a much better starting point than opening a retail store, carrying large inventories, and exposing yourself to constant price shopping.

What really stood out to me today is how clearly this niche fits that model.

And this same systems-over-components thinking applies to far more businesses than just aquariums.

Going forward, I'm likely to take some of the lessons that are coming out of the company profiles that I do and give real-world applications of those in emails like this.

It would be awesome if you could take a spare 4 seconds of your time and vote on the poll below whether or not you enjoy this type of non-specific company analysis.

With that, I’ll see you tomorrow!

Nick