--- title: "Meaning & Key Takeaway of: When you're in a commodity business, the…" description: "\"When you're in a commodity business, the only way to thrive is to be a low-cost producer. And when you're selling money, you're in a commodity business..." image: "https://sms4smile.com/quotes/i/040/duff-mcdonald-85547_banking_when-you-re-in-a-commodity-business-the_311865.png" --- # When you're in a commodity business, the only way to… ![“When you're in a commodity business, the only way to thrive is to be a low-cost producer. And when you're selling money, you're in a commodity business.” quote by Duff McDonald](https://sms4smile.com/quotes/i/040/duff-mcdonald-85547_banking_when-you-re-in-a-commodity-business-the_311865.png) [Download](https://sms4smile.com/quotes/i/040/duff-mcdonald-85547_banking_when-you-re-in-a-commodity-business-the_311865.png) [Open image](https://sms4smile.com/quotes/i/040/duff-mcdonald-85547_banking_when-you-re-in-a-commodity-business-the_311865.png) > “When you're in a commodity business, the only way to thrive is to be a low-cost producer. And when you're selling money, you're in a commodity business.” Duff McDonald ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Competing on price is essential in commodity sectors, including finance, where services become interchangeable. **In simple terms:** Low cost is key in commodity‑type businesses. Key Takeaway Focus on efficiency and cost leadership. Themes economics strategy competition pricing Mood analytical critical Type philosophical inspirational When to use this quote - manufacturing - banking - insurance - retail Key Concepts cost leadership price competition commodity markets financial services Questions to Reflect On - Is low cost always sustainable? - How can firms add value beyond price? A Different Perspective Cost focus can sacrifice quality or innovation, limiting differentiation. ★ ★ ★ ★ ★ No ratings yet [Banking](https://sms4smile.com/quotes/about/banking/) [Business](https://sms4smile.com/quotes/about/business/) [Money](https://sms4smile.com/quotes/about/money/) [Selling](https://sms4smile.com/quotes/about/selling/) ## Related quotes > [It is much more convenient not to be a public company. As a private company you don't have to give information to the public.…](https://sms4smile.com/quotes/marc-rich/it-is-much-more-convenient-not-to-be-a-public-company-as-a-private/) [Marc Rich](https://sms4smile.com/quotes/author/marc-rich/) > [Money is misunderstood. The fact is if you want to be successful - the money will follow you. If you are a doctor, something…](https://sms4smile.com/quotes/frank-lowy/money-is-misunderstood-the-fact-is-if-you-want-to-be-successful-the/) [Frank Lowy](https://sms4smile.com/quotes/author/frank-lowy/) > [Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the…](https://sms4smile.com/quotes/murray-rothbard/gold-was-not-selected-arbitrarily-by-governments-to-be-the-monetary/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [To me, money is a commodity that a person must have to function, not a goal in itself.](https://sms4smile.com/quotes/buzz-aldrin/to-me-money-is-a-commodity-that-a-person-must-have-to-function-not-a/) [Buzz Aldrin](https://sms4smile.com/quotes/author/buzz-aldrin/) > [If the books are selling, the money will follow.](https://sms4smile.com/quotes/larry-kirshbaum/if-the-books-are-selling-the-money-will-follow/) Larry Kirshbaum > [“The most valuable commodity in business today, if people would only recognize it, is enthusiasm”](https://sms4smile.com/quotes/rona-jaffe/the-most-valuable-commodity-in-business-today-if-people-would-only/) [Rona Jaffe](https://sms4smile.com/quotes/author/rona-jaffe/) > [“Capitalism is premised on the accumulation of capital, but under perfect competition all profits get competed away. The lesson for entrepreneurs is clear: if…](https://sms4smile.com/quotes/blake-masters/capitalism-is-premised-on-the-accumulation-of-capital-but-under/) [Blake Masters](https://sms4smile.com/quotes/author/blake-masters/) > [“if you want to create and capture lasting value, don’t build an undifferentiated commodity business.”](https://sms4smile.com/quotes/peter-thiel/if-you-want-to-create-and-capture-lasting-value-don-t-build-an/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [In a commodity business, it's very hard to be smarter than your dumbest competitor.](https://sms4smile.com/quotes/warren-buffett/in-a-commodity-business-it-s-very-hard-to-be-smarter-than-your/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [“Such a crises occurs only where the ever-lengthening chain of payments, and an artificial system of settling them, has been fully developed. Whenever there…](https://sms4smile.com/quotes/karl-marx/such-a-crises-occurs-only-where-the-ever-lengthening-chain-of/) [Karl Marx](https://sms4smile.com/quotes/author/karl-marx/) > [I'm completely irresponsible, I'm afraid. I'm ignorant about money as a commodity - I have never really understood it.](https://sms4smile.com/quotes/ian-gillan/i-m-completely-irresponsible-i-m-afraid-i-m-ignorant-about-money-as-a/) [Ian Gillan](https://sms4smile.com/quotes/author/ian-gillan/) > [We change by changing our consciousness and by saying, money should not be a commodity. Money should be a means to an end.](https://sms4smile.com/quotes/satish-kumar/we-change-by-changing-our-consciousness-and-by-saying-money-should/) [Satish Kumar](https://sms4smile.com/quotes/author/satish-kumar/) > [“Money is not the only commodity that is fun to give. We can give time, we can give our expertise, we can give our…](https://sms4smile.com/quotes/steve-goodier/money-is-not-the-only-commodity-that-is-fun-to-give-we-can-give-time/) [Steve Goodier](https://sms4smile.com/quotes/author/steve-goodier/) > [ The goal \[is\] not only to earn high returns at the top of the cycle but also to avoid giving them back at the… ](https://sms4smile.com/quotes/duff-mcdonald/the-goal-is-not-only-to-earn-high-returns-at-the-top-of-the-cycle-but/) Duff McDonald > [If I could wave a magic wand, I'd break up the banking system.](https://sms4smile.com/quotes/kenneth-c-griffin/if-i-could-wave-a-magic-wand-i-d-break-up-the-banking-system/) [Kenneth C. Griffin](https://sms4smile.com/quotes/author/kenneth-c-griffin/) ## More by Duff McDonald > [Any chief executive who hires a consultant to give them strategy should be fired.](https://sms4smile.com/quotes/duff-mcdonald/any-chief-executive-who-hires-a-consultant-to-give-them-strategy/) Duff McDonald > [ The goal \[is\] not only to earn high returns at the top of the cycle but also to avoid giving them back at the… ](https://sms4smile.com/quotes/duff-mcdonald/the-goal-is-not-only-to-earn-high-returns-at-the-top-of-the-cycle-but/) Duff McDonald Explore all 3 Duff McDonald quotes ## More Banking quotes > [If I could wave a magic wand, I'd break up the banking system.](https://sms4smile.com/quotes/kenneth-c-griffin/if-i-could-wave-a-magic-wand-i-d-break-up-the-banking-system/) [Kenneth C. Griffin](https://sms4smile.com/quotes/author/kenneth-c-griffin/) > [Historically, usury was defined as any interest whatever on an unproductive loan.Our whole banking system I have ever abhorred, I continue to abhor, and…](https://sms4smile.com/quotes/john-adams/historically-usury-was-defined-as-any-interest-whatever-on-an/) [John Adams](https://sms4smile.com/quotes/author/john-adams/) > [I am alive. Up here with the song of the engine and the air whispering on my face as the sunlight and shadows play…](https://sms4smile.com/quotes/stephen-coonts/i-am-alive-up-here-with-the-song-of-the-engine-and-the-air-whispering/) [Stephen Coonts](https://sms4smile.com/quotes/author/stephen-coonts/) > [It's not that I have any general aversion to technology but online banking just seems to be asking for trouble. You can have enough…](https://sms4smile.com/quotes/david-essex/it-s-not-that-i-have-any-general-aversion-to-technology-but-online/) [David Essex](https://sms4smile.com/quotes/author/david-essex/) > [When a government is dependent upon bankers for money, they and not the leaders of the government control the situation](https://sms4smile.com/quotes/napoleon-bonaparte/when-a-government-is-dependent-upon-bankers-for-money-they-and-not/) [Napoleon Bonaparte](https://sms4smile.com/quotes/author/napoleon-bonaparte/) > [“Suckers think that you cure greed with money, addiction with substances, expert problems with experts, banking with bankers, economics with economists, and debt crises…](https://sms4smile.com/quotes/nassim-nicholas-taleb/suckers-think-that-you-cure-greed-with-money-addiction-with/) [Nassim Nicholas Taleb](https://sms4smile.com/quotes/author/nassim-nicholas-taleb/) > [My father was in real estate, banking, and land management. As family life, it was very conventional, happy, and comfortable. We weren't wealthy, but…](https://sms4smile.com/quotes/julia-child/my-father-was-in-real-estate-banking-and-land-management-as-family/) [Julia Child](https://sms4smile.com/quotes/author/julia-child/) > [I only know one thing: Everything I learned about the banking business, I learned in the banking towers of the Societe.](https://sms4smile.com/quotes/jerome-kerviel/i-only-know-one-thing-everything-i-learned-about-the-banking-business/) [Jerome Kerviel](https://sms4smile.com/quotes/author/jerome-kerviel/) > [I have nothing against investment banking, but it's like massaging money rather than creating money.](https://sms4smile.com/quotes/michio-kaku/i-have-nothing-against-investment-banking-but-it-s-like-massaging/) [Michio Kaku](https://sms4smile.com/quotes/author/michio-kaku/) > [If you've taken Econ 101, you know that the quantity of money rises only when the banking system makes a net loan.](https://sms4smile.com/quotes/kenneth-fisher/if-you-ve-taken-econ-101-you-know-that-the-quantity-of-money-rises/) [Kenneth Fisher](https://sms4smile.com/quotes/author/kenneth-fisher/) > [I want the best people, not just on the banking side but on innovation and technology.](https://sms4smile.com/quotes/ana-patricia-botin/i-want-the-best-people-not-just-on-the-banking-side-but-on-innovation/) [Ana Patricia Botin](https://sms4smile.com/quotes/author/ana-patricia-botin/) > [“Intellectually and compassionately explaining the reason freedom works is required for credibility.”](https://sms4smile.com/quotes/ron-paul/intellectually-and-compassionately-explaining-the-reason-freedom/) [Ron Paul](https://sms4smile.com/quotes/author/ron-paul/) > [With post offices and postal workers already on the ground, USPS could partner with banks to make a critical difference for millions of Americans…](https://sms4smile.com/quotes/elizabeth-warren/with-post-offices-and-postal-workers-already-on-the-ground-usps-could/) [Elizabeth Warren](https://sms4smile.com/quotes/author/elizabeth-warren/) > [A banking system is an act of faith: it survives only for as long as people believe it will.](https://sms4smile.com/quotes/michael-lewis/a-banking-system-is-an-act-of-faith-it-survives-only-for-as-long-as/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [For my own part, I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow…](https://sms4smile.com/quotes/janet-yellen/for-my-own-part-i-did-not-see-and-did-not-appreciate-what-the-risks/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) [Browse all 571 Banking quotes ](https://sms4smile.com/quotes/about/banking/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "When you're in a commodity business, the only way to thrive is to be a low-cost producer. And when you're selling money, you're in a commodity business.", "creator": { "@type": "Person", "name": "Duff McDonald" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/duff-mcdonald/when-you-re-in-a-commodity-business-the-only-way-to-thrive-is-to-be-a/", "about": { "@type": "Thing", "name": "Banking" }, "@id": "https://sms4smile.com/quotes/duff-mcdonald/when-you-re-in-a-commodity-business-the-only-way-to-thrive-is-to-be-a/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/040/duff-mcdonald-85547_banking_when-you-re-in-a-commodity-business-the_311865.png", "contentUrl": "https://sms4smile.com/quotes/i/040/duff-mcdonald-85547_banking_when-you-re-in-a-commodity-business-the_311865.png", "url": "https://sms4smile.com/quotes/i/040/duff-mcdonald-85547_banking_when-you-re-in-a-commodity-business-the_311865.png", "width": 1080, "height": 1080, "caption": "“When you're in a commodity business, the only way to thrive is to be a low-cost producer. And when you're…” — Duff McDonald", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Duff McDonald", "item": "https://sms4smile.com/quotes/author/duff-mcdonald/" }, { "@type": "ListItem", "position": 4, "name": "When you're in a commodity business,...", "item": "https://sms4smile.com/quotes/duff-mcdonald/when-you-re-in-a-commodity-business-the-only-way-to-thrive-is-to-be-a/" } ], "@id": "https://sms4smile.com/quotes/duff-mcdonald/when-you-re-in-a-commodity-business-the-only-way-to-thrive-is-to-be-a/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```