Using Economies of Scale in Marketing
Using Economies of Scale in Marketing
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.
Like this article? Share it with your friends
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.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
|||
Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
|||
Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
|||
John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Robin's articles
 | |
|
|  |
 | |
|
| |
 | ||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Marketing Effectiveness Instant Brochures JV Considerations Future Networking Power of Concentration |
|
 | ||
 |
Top 50 Political Blogs
Top Political Blogs of 2009 | |
 |
Top 50 Marketing Blogs
Top Marketing Blogs of 2010 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
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 and Sean Combs!
|
|
|
