Working with your competition is a great way to expand your capacity and/or capabilities. Set up a wholesale relationship with particular competitors regarding specific services, supplies, or products. Companies that work together can take advantage of economies of scale, much like franchises across the country do every single day.
Find the Businesses You Want to Work With
The first thing you need to know is which businesses you’d like to offer your services to or that you want to buy services from. For example, if you sell your own branded “how-to courses,” do you want to offer them to the competition to use as their own, or on a license basis?
Develop and Differentiate Your Brand
When you start outsourcing and wholesaling between companies, it can seem hard to keep your branding unique, but it’s even more imperative when you’re working together closely. You may not even realize the companies that use their manufacturing capabilities to provide parts to their competition. The same can be accomplished in the online marketplace. If each company does what they’re good at, the result will be a higher quality product or service.
Build a Relationship with Your Competition
Before you even consider entering into a wholesale relationship, it’s essential to build relationships with the other brands through industry events. You can also start promoting their affiliate program for products and services that complement yours to introduce a new income stream and show the competition your marketing abilities.
Develop Your Offer
Now that you know who they are and what is needed, you can make your offer. Write out the offer, so you understand all the details before your presentation to them. You want to make it easy.
Make Your Offer
Send a formal letter or set up a formal meeting either online or in person. The more serious you are about the benefits of the offer you’re making to your competition regarding wholesaling, the more likely they will seriously consider it. Don’t be turned off by one no – you’ll find the right people to work with if you just learn from the no and move on.
Accept Changes to The Offer
Your initial offer should be considered a starting point for negotiations with your competition for any wholesaling opportunity. Whether you’re buying or selling, being open to change by either party before the agreement is completed will ensure a more comprehensive and effective understanding.
Move Forward in Good Faith
Once you get a signed agreement, move forward in good faith. Yes, this is your competition, but just because you’re competing with another company for the same clients doesn’t mean there isn’t enough business to go around. They’re not going to sabotage you or themselves. Instead, get to know each other as you work together, and you’ll likely produce even more joint ideas.
Start Small
When you start anything new, it’s always best to start with a small or short test to ensure the relationship can withstand the reality of the situation. If you have a shorter deadline or a project with a beginning and end that you can renew if you want to, it will be a lot less stressful.
Whether you want to become the B2B provider in your niche, or you just want to expand your capabilities or capacity, wholesaling temporarily may work for your needs. If you sell a product or service, creative thinking can bridge the gaps. For example, if you run a virtual assistant company that sells services on a mass scale, your industry knowledge can help you offer services directly to the movers and shakers in the industry, providing another income stream outside of your business to customer options.
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