Stop Hoping Volume Will Fix Margins (It Won't)

Michael Barbarita • January 27, 2026

Low margins. Under capacity. Your plan: chase more volume. This strategy fails almost always.


Your business optimization requires fixing margins before pursuing growth. Your cash flow management demands profitable operations first.


The fatal mistake: Business owners in the worst position make the worst decision.



Low margins plus idle capacity seems like it needs more sales. So they chase volume. They lower prices to win deals. They say yes to everyone.


Growth amplifies whatever dynamics already exist. If your margins are poor and operations are chaotic, more volume makes everything worse.


Your profit margins don't magically improve with scale in service businesses. Your financial performance deteriorates from the operational stress of growing unprofitable operations.


The pattern repeats:


 * Chase volume at low prices

 * Get overwhelmed with work

 * Quality suffers, mistakes increase

 * Team burns out, costs rise

 * Margins get worse, not better

 * Need even more volume to survive


Your earnings improvement dies in this cycle. Your business efficiency collapses under the weight.


The solution: Fix margins FIRST. Then grow.


Raise prices. Develop differentiation. Improve cost structure. Fire bottom customers. Build Position of Market Dominance.


Once margins are healthy and operations are efficient, THEN pursue volume growth from a position of strength.


Your profitability strategies must follow this sequence. Your revenue growth should expand profitable operations, not subsidize unprofitable desperation.


Most business owners resist this because it requires short-term pain. Admitting prices are too low. Firing customers. Slowing down to fix fundamentals.


You're willing to do the hard work. Fix margins first. Then grow from strength instead of weakness.


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