Miller & Company LLP
Perhaps every business owner is thinking about expanding and increasing turnovers. And at that moment the thought appears: “What about buying competitors who are closing or have already closed their business?”. You think that this will accelerate growth and allow you to take a larger market share. But it will not. And if your turnovers are about the same as that of the competitors, it makes no sense to buy their resources. But to attract competitors to your network and make them your partners is more interesting. How to draw them to your side?
3 Reasons Why It Is Profitable for You to Cooperate With Competitors
You get an extra profit without a serious investment. The key to success is the ability to negotiate and a little luck.
You are expanding your influence and your market share.
You don’t just cut your piece, and together with competitors, you bake a new pie. And you are the ingredient that sticks together the rest of the pieces.
For whom it may be interesting? The scheme is perfect for an intermediary business: dealers, distributors, brokers, and agent networks.
Unite With the Strongest
The first step is to inquire about all the major market players. How can you do this?
Call and ask from which suppliers they order products.
Find out the sales volume. When you are “in the market”, you approximately know the volumes of each player. To clarify and find out the actual data, you can call on behalf of a potential client with the question: “And how much have you served customers in the past month? How many reviews can you send? ”. The more information you learn, the more interesting you can make the offer.
The next step is to make an offer that is difficult to refuse. It is almost the most important element of success. You call and offer to combine your volumes to get the best conditions from suppliers.
“An important nuance: unite with the company with whom there are fewer points of contact: by sales region, by the target audience, by advertising platforms”- says the best business accountant in NYC, Paul Miller and owner of a business accounting firm in New York.
We can explain: you know that a competitor’s key sales channel is online. And you sell only through cold calls and partners. This company is potentially interesting to you. Then you come to the supplier and on behalf of a strong player with whom you have teamed up, you agree on the best conditions: the lowest price on the market, the fastest shipping and other important conditions to your customers. For your part, you undertake to make regular purchases of large volumes of products. You can come to negotiations with a representative of a strong player with whom you have teamed up.
Spreading the Network
When you get the best conditions from the supplier, you can safely go to small players. Offer them more favorable terms. Usually, everything revolves around the price. If there are any other important factors on the market - offer the best that you can give. When you do “exploration”, it is important to find out from which suppliers they are ordering products now and what volumes they have.
An important nuance for the negotiations: so that you have time to analyze the situation, it’s important to say that there is a leadership (covert, of course) or a partner, and you don’t make key decisions. You are an intermediary, even if you are the only employee of your company. And on a reciprocal offer with counter conditions, you can respond: "Sorry, I will discuss your offer with my partners." You immediately have a winning position - you can refuse at any time and keep a pleasant relationship.
So, we have considered steps on how to unite with a major player and build our agent network with small ones. Then you strengthen your position, conquer new territories and eventually your brand becomes number one.
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