For example, let’s say you are a high end boutique in New Jersey, you have a highly affluent customer market, but due to your slow sales you are reluctant to make a large volume purchase of designer dresses. You know that if you did make a large purchase from the dress wholesaler you deal with you could obtain a significantly lower price than what you are paying now. Since your budget is limited you can team up with another boutique and combine your purchases so that you can obtain a lower rate per item.
If you pay $20 for a Tahari dress, and can combine your purchasing power, you might be able to buy them for even less than that.
You can also form joint ventures where you sell your supplier’s products to other customers without taking possession of the merchandise, or help your supplier enter a new market in exchange for a percentage of the profits. Imagine if your supplier has a pallet of brand name shoes by Nine West, and you happen to have a contact in Nigeria who would love to purchase the footwear pallet, you can make the connection and come out ahead without even having to store the merchandise.
While you might perceive your competitors as adversaries, you might find that you all have products and services that are of use to each other's shoppers, thus enabling all the participants, including yourself, to successfully sell more inventory.
The sky is the limit when it comes to joint venture ideas, get your creative juices flowing and start expanding your business!
