Joint Ventures: How To Gain $3.4 Million Of Goodwill In 30 Days - Part 2
Friday we started to discuss joint ventures. Here's an example of one we put together with a retailer:
If True Value Can Do It, So Can You
We engineered a joint venture for Chris, the owner of a True Value Hardware store in a town of about 150,000 people. Chris had spent an enormous amount of money on inventory, advertising, and leased space over the nine years he'd been in business. During that time he developed a list of 1,600 loyal customers - people who knew Chris by name and came to him whenever they had a question about anything related to fixing or improving their homes.
The joint venture involved over 30 companies that offered all types of home improvement and repair products and services. All of the businesses became members of the True Value Service Center - a place where customers could find answers to any question about anything around the house.
Each business that wanted to participate was carefully screened and evaluated to make sure that they would offer True Value's customers outstanding service and value. Only one business from each industry was permitted to participate. Each business then paid a $50 fee to join, which was used to build the service counter in the store as well as to send promotional materials to customers.
At $50 apiece, Chris immediately raised $1,500 - more than enough to build the service counter in the store. But the $1,500 was only the tip of the iceberg. Chris negotiated deals with each of the businesses for a percentage of each sale that resulted from his customer's use of the service center. The percentage ranged anywhere from 5% to 30% depending on the business and the kind of margins the sale would bring.
More tomorrow.
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Maximum Marketing Leverage with Joint Ventures (Part 2) - Adult B2B Marketing Tip
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