Greetings Floor Dealers!
In a nutshell, here’s how the strategy works:
- Assemble a group of businesses as your strategic alliance partners. (Interior decorators, cabinet companies, appliance stores, paint stores, etc.)
- Run a “Tax Rebate Special” where you agree to rebate the sales tax to the client. For example, if someone buys $3,000 worth of flooring, and the sales tax is 7%, you cut them a check for $210. (It’s the same as running a 7% off special, but doing it this way is far more compelling.)
- Here’s the twist: the check is made out to one of your strategic alliance partners, and your client gets to choose which one. For example, if they need new appliances, the check gets made out the appliance store.
- All the other businesses in your group do the same thing.
This creates a cycle where all the businesses in the group are not just referring each other business, but have a cash-incentive built in for the client to use those businesses.
If you decide to do this or any joint venture type of strategy, always, always, always make sure you are dealing with a reputable company that will treat your clients well.
I see a lot of benefits from using this strategy:
- Strategic alliances built and strengthened
- Creates differentiation from other companies
- Will bring you additional business from your own clients.
- Will bring you additional business from other people’s clients.
- Keeps the money flowing from business to business within the group
- The check is made out to another company (not the client) so if the client wants to take advantage of it, they have to use it to buy more goods and services.
I’ve been saying for a long time that I don’t think joint ventures and strategic alliance partnerships are a luxury anymore. I think that to thrive and prosper as a business owner, these kinds of relationships are becoming a necessity.
To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”
Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!