You don’t always get what you pay for. Sometimes, you get way more.

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If you’ve spent any time playing with AI, you know ChatGPT is incredible. You also know it’s not the only game in town.
Enter DeepSeek, an AI company that is arguably delivering at least 80% of ChatGPT’s value—for free. (Side note: I tried using DeepSeek side-by-side with ChatGPT and about 4 prompts in DeepSeek had server issues...so maybe ChatGPT's premium status is safe for now.)
This is what happens when a high-cost industry gets blindsided by a far cheaper, “good enough” alternative.
Microsoft, Meta, and Google are pouring billions into AI development. But DeepSeek and other leaner, more efficient players are quietly rewriting the economics of AI.
Does ChatGPT still have advantages? Sure. But if you’re a business looking at AI, you’re asking: “Do I really need 100% of the premium product? Or is 80% for free actually the best business decision?”
If you’re in any business, this should make you think:
Where in my industry could a “DeepSeek” moment happen?
Am I positioned to be the premium brand that survives—or the one that gets disrupted?
Do my customers even need the full 100% I’m offering—or is someone else about to give them 80% of it for a fraction of the price?
The 80/50 Rule in Action
This isn’t new. The 80/50 Rule—delivering 80% of the value at 50% of the cost—has been shaping industries for years.
Think about:
Old Navy vs. Gap → Same parent company, but Old Navy figured out how to strip down to what customers actually wanted and cut costs dramatically. I went to both websites and found nearly identical t-shirts. Gap's price is on sale for $20 and Old Navy has their own discounted down to $9. Old Navy's t-shirt is 55% less than Gap's. I'd argue that Old Navy's shirt is providing at least 80% of the value of Gap's t-shirt.
Old Navy 55% Cheaper than Gap Southwest Airlines vs. Legacy Carriers → Southwest removed unnecessary frills and became the most profitable airline. I did a search on Southwest and United Airlines and compared a roundtrip flight from Los Angeles to New York. Southwest came to $297.37 which included 2 bags. United came to $380.03 but charges $90 each way for two bags bringing United's total to $560. A little quick math and we see that Southwest is about 53% of the price of United.
Dollar Shave Club vs. Gillette → Gillette’s razors were objectively better, but Dollar Shave Club was good enough—and way cheaper.
And then there are cases where the cheaper option isn’t just cheaper—it’s smarter.
Let’s talk technology.
How IT Services Became an 100/50 Business Model

Let’s say you run a company with 100 employees.
Option A: Build an internal IT team.
You’d need at least 5 full-time IT employees to support 100 staff and all the various technology infrastructure you may require.
Entry to middle range IT salary average: $57,000 per year.
With benefits and overhead: $73,000 per employee.
Total: $365,000 per year.
And that’s before factoring in turnover costs (losing one IT employee costs roughly an extra ~$57,000).
Brings the total (conservative) cost to run a 5-person IT department to: $422,000
Option B: Hire an MSP (Managed Service Provider).
Estimated Cost: $180 per employee per month.
Total: $216,000 per year.
That’s 51% of the cost of an internal IT team.
For half the price, the MSP doesn’t just match what an internal team does—it’s often better.
Access to specialized talent across cybersecurity, compliance, cloud, and network management.
Enterprise-grade security and automation tools without massive licensing costs.
Scalability—if you grow, you don’t need to hire five more IT people.
This isn’t just an 80/50 rule example.
This is 100% of the value for 51% of the price.
What Happens When Your Industry Has a DeepSeek Moment?
Now, think about your own business.
Where could your customers get 80% of what you offer—for way less?
Could a cheaper competitor come in and cut you off at the knees?
Are you delivering premium value—or just charging premium prices?
Not every industry is immune to disruption.
Microsoft, Meta, and Google are pouring billions into AI, but if a free alternative captures most of the value, who actually wins? Hint: consumers!
Gillette didn’t see Dollar Shave Club coming.
Legacy airlines laughed at Southwest.
Blockbuster laughed at Netflix.
Now, business leaders need to ask:
Are we the premium product that justifies its price? Or are we about to get DeepSeek’d?
The Takeaway: Get Clear on Your Real Value
If you’re running a business, the worst place to be is the middle ground.
You either offer something truly premium that’s worth the price…
…or you figure out how to deliver 80% of the value for way less—before someone else does it first.
AI, IT services, retail, airlines, software—it doesn’t matter.
The 80/50 Rule is everywhere.
The only question is: Are you the disruptor, or the disrupted?
Final Thought: Where Are You Overpaying?
Look at your biggest business expenses.
What if you could get 80% of the value for 50% of the price? Easy decision, right?
And what if you’re unknowingly offering a product that someone else is about to undercut?
Think ahead. Because someone else already is.
This article was inspired by Scott Gallow's podcast here: Meta & Microsoft Brush Off DeepSeek + Starbucks Stages a Comeback | Prof G Markets - YouTube
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