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



Using Economies of Scale in Marketing - To learn more about this author, visit Robin Elliott's Website.

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