Stop Chasing Profit Margins - Start Creating Transformation

Michael Barbarita • September 2, 2025

I watched a CEO celebrate a 2% improvement in profit margins.



He high-fived his team. Posted on LinkedIn. Called it a win.


Three months later? His biggest client left for a competitor.


Here's what he missed: He was playing the transaction game while his competition was building transformation.


When you focus only on profit margins, you're telling customers one thing - you care more about your numbers than their dreams.


The companies winning today? They've figured out something most CFOs haven't.


Revenue growth isn't just about better margins. It's about becoming indispensable to your client's transformation.


I learned this from a landscaping company that stopped selling "lawn maintenance" and started selling "the pride your neighbors feel when they drive by."


Same service. Completely different conversation.


Their profit margins went from 12% to 35% overnight.


Because when you connect your service to someone's deepest desire, price becomes irrelevant.


Most fractional CFOs are transaction-focused. They talk about cost reduction and business efficiency.


The strategic ones? They ask: "What transformation is your customer really buying?"


That's the difference between competing on price and commanding premium fees.


Your financial performance improves when you stop being another vendor and start being their path to what they truly want.