When I was building NewAir, we didn’t waste time fighting for scraps in crowded categories. Instead, we focused relentlessly on creating blue oceans—uncontested market spaces where we could own the category, command premium pricing, and scale with strong margins.
That mindset drove our growth, positioned us as a leader in niche appliances, and made us an attractive acquisition target. If you’re a founder looking to scale without racing to the bottom, here are the four rules I followed to carve out profitable space—and build a brand that lasted.
1. Find Niche Categories
We didn’t compete head-to-head in the refrigerator market. That space was owned by giants—and margins were razor thin.
Instead, we went where they weren’t:
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Wine coolers for enthusiasts who cared about preservation and presentation
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Beer fridges for craft lovers who wanted cold storage designed for their lifestyle
These niche categories were underserved, high-intent, and full of passionate consumers. And because we solved their specific problems, we were able to charge premium prices—with less competition and stronger gross margins.
Lesson: Go narrow before you go wide. Niche wins create margin. Margin creates leverage.
2. Stay Close to the Customer—and Keep Innovating
Selling direct-to-consumer gave us a real advantage: feedback in real time. We didn’t have to wait for retail reports—we heard directly from our customers.
We used that insight to:
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Rapidly develop new SKUs
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Improve design based on reviews
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Launch features customers didn’t even know they needed
At one point, new products made up 20% of our annual revenue. That kind of innovation wasn’t random—it was customer-driven and margin-aware.
Lesson: Innovation isn’t about being first. It’s about being closer. Stay tight with your audience and build what they’re already asking for.
3. Invest in Your Brand—It’s Your Margin Engine
A strong brand isn’t fluff. It’s your biggest asset when it comes to pricing power.
We focused on:
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Better products with elevated finishes and features
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Better packaging to reduce damage and elevate the unboxing experience
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Better returns to convert frustrated buyers into lifelong advocates
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Better reviews by responding fast and improving constantly
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Better aspirations through influencer partnerships and lifestyle positioning
When your brand connects emotionally, customers stop comparing on price. That’s how you earn margin—and loyalty.
Lesson: Competing on features is short-term. Building a brand that connects? That’s how you own the category.
4. Know Your Margins—Down to the Penny
You can’t scale what you don’t measure. At NewAir, we knew our margins cold—every fee, allowance, and operational drag that ate into profitability.
We built internal systems that tracked:
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Contribution margin by SKU
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Freight costs by channel
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Return rates and chargebacks
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Promo and advertising ROI
That clarity let us double down on what worked and cut what didn’t. It also made us an ideal acquisition target. Buyers don’t chase revenue—they buy cash flow.
Lesson: If you want to scale, exit, or grow sustainably, margin visibility isn’t optional. It’s the foundation.
The Bottom Line: Always Build for Margin
Margins are your fuel. They give you the room to:
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Reinvest in growth
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Ride out tough quarters
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Command a premium valuation
And most important—they give you freedom. When you control the market and your margins, you’re not chasing competitors. You’re building a business on your terms.
So ask yourself:
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What’s your blue ocean?
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How are you staying close to your customer?
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Is your brand strong enough to justify your price?
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Do you know your margins like an operator—or like a guesser?
If you’re looking to build a profitable, differentiated brand, I’d love to connect. Drop a comment or message me directly. Let’s find your blue ocean—and make sure you own it.
