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If I Ran the Water Company: A Disruptive Fairytale

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January 21, 2008

It’s been a long, snowy winter so far here in Utah. Alta ski resort is reporting 17” of new snow today, bringing the annual total to 109” (more than 2.75 meters). It’s heaven for skiers, but hell for commuters. No doubt the desert state needs the moisture, which has been well low on precipitation six out of the last seven years, but it did make me wonder today why my water bill does not get less expensive during the years we have a lot of snow.

Which gave me an idea. Why don’t governments follow the basic principles of supply and demand, and gradually increase prices as the supply drops (or keep them the same if water levels are acceptable). By doing this, state governments would encourage water conservation and reward citizens for being water-frugal. And if there were two water companies in my area and one offered this pricing model, I would choose it over traditional models in an instant. Of course, governments are not likely to change their way of doing things, since steady water rates guarantee income for spending budgets.

That said, there are opportunities to be disruptive-just like this-in virtually every industry, and small businesses have the advantage of being agile, innovative and able to take advantage of them.

If you’re a small business owner, take a look at your industry and see how you might be able to do something drastically different: it might just give your business the advantage you need to really take off.

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