K-selection & r-selection

Humans want all their children to survive. We will put lots of effort into having them not just survive, but in fact, thrive. We are a K-selection species. (Capital K.)

Sea turtles not so much. Lots of children. Hopefully, a few of them will make it. Sea turtles are an r-selection species. (Small r.)

This concludes today’s lesson in evolutionary biology

Maybe broad index-funds are r-selection and Berkshire Hathaway is the king of K-selection. It’s a little bit of stretch, but not that much.

What about your company? Are you a K-selection company with a few huge customers that you must keep happy at all costs?

Or an r-selection company with a trillion tiny customers, none of whom you know by name?

As an r-selection company, you don’t care much about losing a particular customer or perhaps an entire demographic. Even if you are not quite that, perhaps you have a waiting list of customers you can’t service such that if you lose one, they will be quickly replaced with another.

In that case, what would happen if you thought about who your most annoying customer was and told them that the price has gone up. Either they’ll give you more money or they will leave.  Either way, you win.

The new year is a great time for a price hike.

The new year is a great time for a price hike.

But you, our loyal reader, this blog will remain absolutely and completely free — and worth every penny of it.