Bookkeeper Eamon Ward gives helpful suggestions on how small to medium businesses can gain valuable customers in a month
Part four
This week we will talk about what is probably the single most powerful marketing technique there is in existence: joint ventures.
This is where you develop a mutually beneficial relationship with another individual or organisation.
Joint ventures will enable you to leverage the existing resources of another business, and its valuable relationships with clients to your advantage in order to gain access to your ideal prospects.
One example of this form of relationship is a supermarket which allows a flower shop or bakery to operate independently on its premises and avail of its customers and location etc, in exchange for rent or a share in the profits.
Let us look at how this works in practice. In marketing terms it is known as a host/ beneficiary relationship. For the present, say you plan to form the beneficiary part of the relationship.
Think: who in business terms is within easy reach of your ideal clients? Make a list of the different businesses who already deal with them. Try to locate businesses that have clients who would normally be predisposed to purchasing from you.
If you sell safes or security locks maybe you could joint venture with someone in the jewellery business. If you lease or rent property could you joint venture with a carpet cleaning company?
Next do a proposal and appeal strictly and unashamedly to their self interest.
Tell them that you will write them a cheque for say €3000 in 60 or 90 days and guarantee them that it will not involve any risk or capital investment on their part or indeed effort and let them know that it could become a regular stream of additional cash flow.
You may need to educate the host company about your business and address up front any fears which they may have. Show them letters and testimonials from your existing clients in praise of your products.
All they have do to at this stage is agree to deliver a sales message to their clients or better still endorse your product.
Give the owner an unconditional guarantee in writing that your product or service purchased by his customers will be outstanding and similarly guaranteed.
You agree to create everything – sales letters with special offers etc, all subject to their approval and cover any costs such as stationery mailing that maybe incurred.
If for example 2,000 prospects are approached and 5 per cent of those buy your product at say €300 that is100 new additional customers you will have obtained and your sales will have increased by €30,000.
Keep in mind your product is endorsed by someone who is trusted by the prospects so you should expect a higher than average return.
While there is no hard and fast rule, the cheque for €3,000 which you have agreed to offer your host is merely 10 per cent of your sales figure but you can afford to be generous at this stage as you will get further business from those customers in the future in the form of repeat business and referrals.
What if you did this with say three or four businesses? What if you did it on a regular basis three or four times a year?
What if in addition to this you went outside your area of competition maybe to Kerry or Clare or Wicklow and taught the technique to others in your business for a percentage of the extra sales?
Also don’t forget later you can become a host and seek out opportunities where you can add somebody else’s products or services to your business for a similar profit..
Joint ventures can involve a lot of money and decisions made now will have a big impact on future sales so when you impart these ideas it is best that there is a solid agreement in place.
Finally, don’t make the common mistake of decreasing your traditional advertising in newspapers, etc. In fact you should increase it in line with your increased turnover. This will not only help multiply the sales from your joint ventures but with the extra resources employed in your advertising budget you can further penetrate the market.
Before you put the Advertiser aside, jot down some businesses which are complementary to your own and who deal with your ideal customers. That is your first step to a more prosperous future.
For more information log on to www.eamon ward.vpweb.ie or call Eamon at (090 ) 6454491.
