Out-sourcing for Profit
How do you feel about outsourcing some of your business functions? Many businesses may want to do everything in-house but in reality every business does some outsourcing. While you may not think of it that way, if you use an accountant, that is an outsourcing service. If a restaurant uses a linen service, that is a form of outsourcing. So regardless of how much a business wants to think of themselves as being self- sufficient, in reality they are outsourcing some business functions.
Outsourcing for profit is taking it one step further and utilizing it for some vital business functions. For example, your local office supply chain may offer a variety of signs and posters but may actually only produce a few of them in-house. They most likely have outsourcing agreements to provide those signs and banners that they don’t produce. Why, because it allows them to retain the customer relationship, and they can generate more revenue as a result.
They recognize that it is not cost effective for them to invest in every type of print production equipment they would need to meet the wide variety of requests they receive. But by developing key wholesale or dealer pricing arrangements, they can get lower pricing that is not available to consumers and make money by offering a competitive retail price to the public. That is how they are able to outsource for profit.
Sometimes it is good to ask a business if they offer dealer and or wholesale pricing. You would be surprised how many will answer yes. Just think, that customer you just referred could be an opportunity for your business to join the many companies that are currently outsourcing for profit.