Why some of your competitors purposefully make "unprofitable plays"

"Why would they spend $50,000 on that event? They'll never make that money back."

I hear this question from business owners watching their competitors make seemingly irrational financial decisions.

But what looks like financial foolishness is often strategic brilliance.

Let me explain why some of the smartest businesses deliberately make "unprofitable" moves

THE SHORT-TERM MINDSET:
• Every marketing activity must show immediate ROI
• Every event must directly generate sales
• Every video must drive conversions
• Result: Predictable growth with a low ceiling

THE LONG-TERM MINDSET:
• Some activities build brand equity, not immediate sales
• Some investments pay off over years, not months
• Some moves change market perception permanently
• Result: Slower start but exponential growth over time

As markets mature and competition intensifies, direct response marketing alone isn't enough to win.

The businesses that dominate their industries understand something crucial: Not everything that builds your business can be measured on a spreadsheet.

Think about the brands you personally love. Why do you choose them over competitors?

Is it because their Facebook ads had a better call-to-action? Or is it because something about their brand resonates with you on a deeper level?

Brand isn't just a logo or a color scheme. It's the emotional shorthand people use to make decisions.

It's what people say about you when you're not in the room.

And it's built through seemingly "unprofitable" activities:

• The conference that costs $100,000 but positions you as the industry leader
  • The video series that takes months to produce but demonstrates your values
  • The customer experience that costs more but creates lifelong advocates

These investments don't show ROI on next month's P&L statement. But they create something far more valuable: preference.

When two businesses offer similar services at similar prices, people choose the one they feel connected to.

That connection is brand equity, and it's the most defensible competitive advantage you can build.

So the next time you see a competitor making a move that seems financially irrational, ask yourself:

• What are they building beyond immediate sales?
  • What story are they telling about themselves?
  • What position are they claiming in customers' minds?

The businesses that win in the long run aren't just selling products or services.

They're selling belonging. They're selling identity. They're selling belief.

And those things, while impossible to measure on a quarterly report, are ultimately what separate the businesses that survive from the ones that thrive.

Start playing the long game. Your competitors already are.

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