Welcome everybody. This is episode 48 of Coffee with Jody. Today, I’m going to be sharing with you how to increase your profitability or your margin in a mature industry. It’s hard to know what to share on these different videos, because there’s so many interesting things. I had one idea for this video and now I’ve shifted it because I had a very important conversation this morning with one of my clients, making this topic more top of mind and relevant. She’s in the cruise industry as one of the businesses associated with the cruise industry, which as you know during this pandemic has just kind of basically fallen off of a cliff. We were talking about joint ventures and the ability to actually leverage relationships for a win-win as well as leveraging knowledge that she has, with knowledge that they have so that they can create projects that would provide services, that they might not have been able to provide in the past because now they’re in a joint venture.
Years and years and years ago, when I was a new coach, I asked an economist how to help gain margin in mature businesses as one of my clients was in the food distribution industry and the margins in those industries are very, very tiny and he said, “Jody, there are only four ways. You either have to introduce a new product or service line, enter a new geography or location, establish a new distribution channel, or make a change to your business model. That’s it.”
In the joint venture that I was talking about with this client, it was a new distribution channel having a joint venture that allowed her to access other people’s databases and markets and for them to be able to access hers as well as a new product offering. This was an entirely new division of her company met three of the criteria, the new business model, a new distribution channel and a new product or service and now that I think of it a new territory. So actually, it met all four. I can’t stress enough during this time, all the time, but definitely during this time to be thinking about and asking yourself “how can I leverage what I know and who I know for a win-win?”
Think about it! Take a little time, sit down and think about the breadth of what you know, and who you know, and how you can create a win for them and for your customers, which is ultimately a win for you.
If you got value from this video, like it, share it, subscribe. I really appreciate you. Bye for now.