Tweet

Using Economies of Scale in Marketing

Written by: Robin Elliott

Article Overview: This powerful, yet simple system can revolutionize your business.

Using Economies of Scale in Marketing

How can Wal-Mart sell products at such low prices? How can you do the same, without being a Wal-Mart? Can you undercut FedEx prices? You might be surprised at my answer.

Economy of Scale definition: “Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls.”

Investopedia says: “Economies of scale gives big companies access to a larger market by allowing them to operate with greater geographical reach. For the more traditional (small to medium) companies, however, size does have its limits.”

Never more, Miranda, never more! This is where traditional thinking clashes with today’s business and distribution reality. Traditionally, big business had the edge. Wal-Mart is a well-known example. No longer. Through the use of Joint Ventures, you can now compete in any market. A good example of this is when I went to courier something to one of our Members in Detroit by FedEx. The clerk suggested I use another courier service for a cheaper rate. Here’s the exciting part: The other courier uses FedEx and charges less than FedEx! They are not really competing with FedEx; they are piggybacking on FedEx by being an intermediary, getting a lot of business and buying FedEx services for a very good rate, then reselling it. They don’t have huge overhead, airplanes, or branding. They simply Joint Venture with FedEx and use economies of scale. And everybody wins: FedEx, the customer and the middleman (or Joint Venture broker)

Small businesses and individual Joint Venture Brokers can utilize the power of economies of scale and benefit from the distribution of value through the use of existing resources. Everything you need is already available. You don’t have to build, buy or own FedEx to leverage their resources. Smart entrepreneurs don’t risk money on retainers and wages for “consultants” or gamble on advertising that isn’t proven. They don’t cold call or waste time. They work strategically. Imagine an army general who decides to randomly bomb his enemy, hoping to hit something, or a politician who isn’t interested in demographics or polls or what his competition is doing. Work smart, not hard. Don’t risk the farm.

I recently offered our Members the opportunity to make a serious amount of money at no cost or risk, using existing resources to reach tens of thousands of potential buyers. We provide them a proven, simple, prepackaged system And we do this all the time. 98% of my business is built on Joint Ventures. This creates security and permanence for my Members. Responsible entrepreneurs understand the need to stay in business and achieve success, not only for themselves, but also for those who depend on them: their vendors, employees, associates, Joint Venture partners and clients.

Next time you want to spend money, gamble on the promises of salespeople, reinvent the wheel or think in terms of “competition”, perhaps you should rethink your options. Download my book on Joint Ventures, “Joint Adventures”, with my compliments. Click here: www.dollarmakers.com/joint_adventures.pdf then join the DollarMakers Joint Venture Forum. Together, we are doing amazing things.

Robin J. Elliott www.dollarmakers.com

Related Articles
  Benefits of Regional Economic Integration
  Quote: Taking African products where there’s no bias
  And ...
  Common Sense Stress Management
  SMEs oil prices globalisation and SMEs

Article Tags:



Related Forum Posts
Re: What is your Business? - We are running a Online Marketing Firm and we have some good clients to which we are offering a complete Digital Marketing strategy like Search, Mobile Marketing, Branding and Design. I think in Online Marketing company online presence can be a wining factor for the success of the company.
Re: Let’s talk about the ways of marketing your products, servic - I agree with some of the others who responded it depends on what your selling... but to answer your questions here are some of the methods I use. Forum Marketing Yahoo Answers (I need to use more of) SEO (Search Engine Optimization) Bum Marketing or Article marketing P-P-C (Pay Per Click) Marketing Online Directories Hope this helps.
Re: Should Evan add a "Social Media Marketing" category to the f - Hi, Online Marketing would be a great title, and having sub categories would make it even better, there would plenty of categories to choose from, Social Media, SEO, Article Marketing and yes even Affiliate Marketing to name just a few, great looking site btw Jeff, take care, Carol
Kevin's Case Study #11 - A New Forum Category? - Hi Everyone, 2009 is a new year and I'd like to create a new forum category to jazz things up! In the past, there's been some interest voiced about adding a "Social Media Marketing", "Online Marketing", "Internet Marketing" or "Online Promotion" category. I'll implement [u:1g2tv6tf]ONE[/u:1g2tv6tf] of those new categories, but can someone first tell me what the difference would be between the existing "Marketing" section and one of those new options mentioned above? Thanks
Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The Digital Diet by Daniel Sieberg

Bootstrapping Your Start Up Business.

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.