BJJ Mental Models Mini Ep. 80: Race to the Bottom
Nov 13, 2025
This mini-episode dives into the 'race to the bottom' in pricing, critical for Jiu-Jitsu businesses. It explores how app stores have distorted price expectations and created unsustainable financial models. Competitive pressures can lead to a downward spiral of undervalued services. The discussion highlights the importance of profit over sheer sales volume and advises against accepting low-paying clients to preserve value. Advocating for fair compensation in the sport ensures a viable career path for professionals.
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Race To The Bottom Defined
- The race to the bottom is when competition drives prices irrationally low, harming providers.
- Steve Kwan links this economic concept directly to the jiu-jitsu service market and pricing pressure.
Software Example Of Pricing Shift
- Steve Kwan compares mobile app pricing history to show how standards shift toward low price expectations.
- He uses software as an example where app stores made consumers expect cheap or free products.
Downward Bidding War
- Competition can force value down, creating a downward bidding war instead of the usual upward one.
- Steve Kwan emphasizes that competition must still allow providers to make a profit, not just win customers.