We all want to be in the high price, high margin quadrant. Stay here long enough and your agency will certainly be a rocket ship.

The main challenge with this desirable quadrant is that, as Bezos puts it: "Your margin is my opportunity" – competitors will look to undercut you on pricing and imitate your offering. You have to keep on innovating & proving out your value to clients to maintain both price & margin.

You can also build a strong business with low price, high margin projects and retainers as long as you have the operational chops to handle large volumes (catch a lot of rabbits). We're trying to do this with BX Studio and Bolster.

The risk of being low price is that when margins compress due to poor execution and lack of cost discipline, you can slip into the low price, low margin quadrant, a deadly place for an agency to live.

Being high price and low margin isn't great either but there's an opportunity, if you can maintain pricing power, to increase efficiencies and bring costs down thereby increasing margins. Some agencies find this difficult to maneuver because of a stubborn belief that there is a "right way" to do things and zero flexibility in changing personnel and process.

Not pictured here but worth a mention: middling price -- this is arguably a terrible place to be because it's hard to differentiate and you end up losing to both low and high priced competitors.