Running a small business is like being a driver on a giant highway. There are different lanes you can choose, each with its own speed limit, rules, and destination. For business owners, there are two main lanes on this highway: the High-Volume Lane and the High-Margin Lane.
Both lanes will get you where you want to go. Both can lead to success and profit. The problem isn’t which lane you pick. The real problem starts when you don’t know which lane you’re in. Or worse, when you’re in one lane but trying to drive like you’re in the other.
This confusion is one of the biggest reasons small businesses struggle. They feel stuck, they waste money, and they work incredibly hard without seeing the results they want. Often, they blame their product, their customers, or the economy. But usually, the issue is much simpler: they are using the wrong playbook.
Let’s break down these two lanes. Understanding them could be the key to unlocking your business’s potential.
Lane 1: The High-Volume Business (The Firehose)
Imagine a firehose spraying a massive amount of water. That’s the energy of a high-volume business. These businesses sell a lower-cost product or service to a lot of people. Because each sale doesn’t make much profit, they need a constant, heavy flow of customers to succeed.
What this looks like:
Products: Think of a coffee shop, a T-shirt store, a snack brand, or an online store selling phone cases.
Pricing: The price is low and competitive. You might only make a few dollars of profit from each sale.
The Money is in the Flow: Your profit doesn’t come from one big sale. It comes from adding up hundreds or thousands of small sales. If you sell more, you win more. It’s that simple.
The High-Volume Formula: Speed, Systems, and Traffic
If you are in this lane, your entire business needs to be built around three things:
Speed: The buying process needs to be fast and easy. A customer should be able to see your product, decide, and buy it in minutes. There are no long sales calls or deep thinking required. Your checkout process should be a frictionless slide.
Systems: You cannot personally handle every single order. You need systems—automated and repeatable processes. This includes everything from how you take orders online, to how you pack boxes, to how you handle customer service emails. Systems allow you to handle the flood of orders without drowning.
Traffic: This is your lifeblood. You need a constant, wide stream of new people seeing your products. Your marketing energy should be focused on reach. This means using social media ads, search engine optimization (SEO), content marketing, or partnerships to get your product in front of as many eyes as possible. You’re playing a numbers game.
The High-Volume Mindset: You are running a well-oiled machine. Your goal is to make the machine more efficient and to pour more people into the top of the funnel. You celebrate big sales days and focus on metrics like “units sold” and “website visitors.”
Lane 2: The High-Margin Business (The Laser Beam)
Now, imagine a powerful, focused laser beam. It’s not wide, but it’s intense and can cut through steel. This is the energy of a high-margin business. These businesses sell a high-cost, premium product or service to a select group of people. Each sale brings in a significant profit, so you don’t need a huge number of customers.
What this looks like:
Products: Think of a custom home builder, a business coach, a high-end jeweler, a specialized software company, or a luxury landscaper.
Pricing: The price is high. It reflects the immense value, expertise, and results you provide. Your profit on each sale is substantial.
The Money is in Positioning: Your profit comes from the perceived value and trust you build. People aren’t just buying a thing; they are buying a solution, a transformation, or a status symbol. They are buying from you.
The High-Margin Formula: Trust, Proof, and Authority
If you are in this lane, your business thrives on three different pillars:
Trust: No one spends $10,000 with someone they don’t trust. The entire sales process is about building deep trust. This takes time and genuine connection. The customer needs to feel heard, understood, and confident that you can solve their big problem.
Proof: You can’t just say you’re great; you have to prove it. This means showcasing case studies, testimonials, and portfolios. It means sharing stories of how you’ve transformed other clients’ lives or businesses. Your past success is your best sales tool.
Authority: You need to be seen as the expert, the go-to person in your field. People pay a premium for authority. This is built by sharing your knowledge through speaking engagements, writing articles, hosting webinars, or creating high-quality content that demonstrates your expertise.
The High-Margin Mindset: You are a trusted advisor. Your goal is to build deep relationships and provide incredible value. You celebrate closing a major deal and focus on metrics like “customer lifetime value” and “client satisfaction.”
Where Business Owners Get Messed Up: The Lane Swerve
This is the critical part. Most business struggles happen right here, in the space between the lanes. Owners get confused and start swerving, trying to act like a business they are not.
Problem 1: The Premium Shop Acting Like a Street Vendor
This is a very common and painful mistake. Let’s say you are a financial planner helping people prepare for retirement. You offer a premium service for a $5,000 fee. You are a High-Margin business.
But what if you act like a high-volume business?
You spend all your time on social media trying to go viral with funny memes.
You get frustrated when people don’t sign up after seeing one post.
You avoid having long, meaningful conversations because you think it takes too much time.
You feel desperate and start offering discounts to anyone who shows a flicker of interest.
This is a premium shop acting like a street vendor yelling, “Get your financial plans here!” It devalues your service. It scares away your ideal clients who are looking for a serious, trustworthy expert. You are using a firehose strategy when you need a laser beam.
You can’t build trust through a meme. You can’t prove your authority with a 15-second video alone. You can’t command a high price by acting desperate. You are in the trust business, and you’re acting like you’re in the traffic business.
Problem 2: The Low-Ticket Shop Relying on a Small Crowd
The reverse is also a major problem. Imagine you run an online store selling fun, printed socks for $15 a pair. You are a High-Volume business.
But what if you act like a high-margin business?
You focus all your energy on building a tiny, “tribe” of loyal customers.
You don’t invest in ads or marketing to find new customers because it feels “impersonal.”
You get stuck because your 100 loyal fans can only buy so many socks. You hit a revenue ceiling.
You try to build deep, one-on-one relationships with every single person who visits your website.
This is like using a laser beam to try and water a field. It’s the wrong tool for the job. Your business model is built on flow and reach. If you are not constantly bringing in new traffic, your sales will dry up. Loyalty is great, but it can’t be your only strategy. You need a firehose of new eyeballs, not a deep conversation with every visitor.
This is delusion. You are in the traffic business, but you’re acting like you’re in the trust business.
How to Get in Your Lane and Stay There
So, how do you fix this? You must get brutally honest about which lane you are in. Your pricing model is the biggest clue.
If you are in the High-Volume Lane, your mantra is: MORE.
Energy In: Pour your energy into marketing and systems.
Focus on: Making the buying process instant. Reducing friction. Automating tasks. Scaling your advertising. Testing new ways to get traffic.
Your Question: “How can I get my product in front of 1,000 new people this week?”
Let Go Of: The need for every customer to have a deep, personal relationship with you. Serve them well, but understand that the relationship is with the brand and the smooth experience, not necessarily with you personally.
If you are in the High-Margin Lane, your mantra is: BETTER.
Energy In: Pour your energy into relationships and content that builds authority.
Focus on: Creating amazing case studies. Asking for testimonials. Having powerful sales conversations. Writing articles that show your expertise. Networking with the right people.
Your Question: “How can I deepen the trust with five potential ideal clients this week?”
Let Go Of: The panic when you don’t have a line out the door. Your business isn’t built on a line; it’s built on the quality of the few conversations you have. Stop chasing tire-kickers and focus on serious buyers.
The Bottom Line
The business model you picked isn’t the problem. Selling socks isn’t better or worse than selling business coaching. Both are fantastic paths to success.
The problem is how you are acting within that model.
Are you a firehose trying to be a laser beam? Or are you a laser beam trying to be a firehose?
Look at your pricing. Look at your product. Be honest about which lane you are truly in. Once you know, you can stop using the wrong playbook. You can stop wasting energy on strategies that don’t fit.
You can finally step on the gas in the right lane, with the right map, and start moving toward the success you’ve been working so hard for. Now is the time to choose your lane and drive with confidence.
Grab my book! https://amzn.to/45Cm2ky
Hi, I’m Heather.
Let me help you scale your Utah $1M+ biz to $20M+
My credentials:
- Built & sold Queen of Wraps (yep, that’s my face on the side of I-15)
- Learned 1,769,230+ lessons so you skip trial-and-error
- Zero Ivy MBA (just pioneer grit + market-tested tactics)
Let’s talk if you’re:
- Ready to work on your business (not in it)
- Hitting $1M+ and knowing you’re built for more
- Have 10+ employees that need to see your vision
Subscribe to my YouTube https://www.youtube.com/@Buy-Scale-Sell