I mentioned previously that to be successful, we need to build social networks and partnerships that will provide mutual benefit. One such arrangement is a joint venture. This is specifically a partnership between two or more people, where the combination will result in benefit to both parties.
Usually the two (and sometimes more) businesses in the joint venture will have a similar target market. They will complement each other in the provision of services to the customers. The common ground of customers that they attract means referrals either way resulting in more sales. This is a very powerful tool which should be utilised in marketing.
What are the benefits of setting up a joint venture? This can be illustrated in examples of joint ventures which we commonly see in our malls and shopping complexes.
A one stop shop for home appliances could work with a supermarket and occupy neighbouring areas in a mall. This arrangement within shopping complexes is quite common. Those buying kitchen appliances could buy groceries at the same time, and those who buy foodstuffs could buy kitchen appliances.
They share rent, and any promotions such as cooking shows will help both businesses with the sales. They share costs of these common sales pitches. This would encourage mutual help between both companies. The tag team of sales and promotions will boost each other’s morale. Cost of advertising is also reduced.
This can be taken a step further. They could help each other in promotions of products. The supermarket may have a special on meats and provide discount vouchers for roasting pans which can be purchased next door. And buy a barbecue set and you might be offered a supermarket voucher which is redeemable.
The partner is verifying by their actions that they recommend to their customers the other company, and vice versa. They could identify any referred sales and pay out a percentage as commission.
Another well known joint venture is cinemas (or any other showgrounds such as stadiums) and foodstalls. The food-stalls sell souvenirs and movie paraphernalia, while before each movie screening, advertisements of ice-creams and popcorn appear. Customers also benefit by having entertainment and food at their convenience.
I recently witnessed another joint venture in action at a shopping complex. The car park provider teamed up with a car washing company. While people parked their cars, they could have their car washed and waxed all in the time the customers go shopping. This would be a worthwhile partnership as customers would prefer to visit that particular car park to get their cars cleaned. The car washing company benefits with having a portion of the car park customers paying them for their services.
These examples illustrate the power of setting up joint ventures. There is minimal cost required when two companies which provide services complimenting each other become partners. The joint ventures possible are limitless, and this simple idea could generate multiple sales and significant profits.
Think about this concept which can make you rich. To your success.