Take Out the Middleman To Make Your Business Thrive
Your business will make you more bucks if you don’t have to deal with a middleman
The more hands a product changes between the producer and the customer, the less profit there is more both the producer and the customer.
Every middleman — until the product reaches the customers — takes a piece of the pie. To make the most profit, you need to take out the middleman. Each one of them.
The more middlemen there are, the less profitable your business will be. No middleman means you don’t have to share the profits with anyone. And more money to grow your business.
You don’t have a business if you don’t make any profit
You do business to make money. You make money by making profits. If you don’t make any profit, you lose money. You can’t stay in the business for long if you only lost money — but earn nothing.
The more profits you make in a business, the more you can make it grow. And the more there is for everyone.
There is more than one way to make a profit in a business. If you’re a producer or a manufacturer, you can do any of the following to make your business profitable:
- You can squeeze the production cost.
- You can sell your products for more bucks.
- You can make more profits by increasing the sales volume.
- You can take out the middleman and give your products directly to the customers.
If you’re a retailer, you can make your business profitable by doing either of the following:
- You can take out the middleman and buy products directly from the producer. Or,
- You can sell the products for less. This way, you make less profit per product, but you will multiply your sales volume.
Whoever you’re and what business you may be in, taking out the middleman always makes you more profits. Unless, of course, you’re the middleman. But if you were the middleman, you wouldn’t be reading this, anyway.
Are the middlemen creating less value for you than they’re taking?
If the middlemen in your business are helping you — they’re creating value for you — then they’re an integral part of your business. But if they’re taking out values from you, you need to take the middlemen out.
Businesses rely on middlemen for two reasons:
- They don’t have what it takes to do the vertical expansion. They can’t do it all by themselves.
- Middlemen are an integral part of that type of business.
In either case, you can take out the middlemen. It wouldn’t be easy for either case. You can make it easy for you, though. Are the middlemen creating values for you? Can you go alone and do everything yourself?
Only you can answer these questions. If you want to take out the middlemen, you will. Even if you don’t have the means, you will.
You don’t have to start big. Starting big isn’t possible when you’re starting from nothing. It takes time to gain momentum.
If you’re losing profits to the middlemen, you’d better take them out no matter how hard it seems. You owe it to your business growth.
If you can take out the middlemen, you can increase your profits. To maximize the profits, you’d better serve the customers directly. They’ll get better deals this way. You’ll also make more profits. And your business will thrive.
Economics asserts for an efficient system
An efficient system takes civilization forward. If a system isn’t efficient, it needs to go. The more efficient a system, the better it’ll serve everyone.
From production to the consumption of a product is a complete system. The more value it creates with the least waste of everyone, the better it is for society.
A business is efficient if it can buy or produce a product with the least cost and the customers can have that product for the least bucks spent.
Everybody wins in an efficient system. When you have a middleman in your business, you’re losing profit margins to him. Your business isn’t as efficient as it could be. But you can make it more efficient than it is.
You just need to take out the middleman. And do his job all by yourself.
Economics rewards an efficient system. When you have an efficient system in place, you get to pocket more bucks than you would in an inefficient system — with a middleman in it.
Taking out the middleman is always profitable for your business
Taking out the middleman is always beneficial for your business. It’ll always work for you. Without a middleman — who’s taking a piece of the pie — you get to keep it all for yourself. It’ll make your profit margins larger.
You can then use this money to grow your business. You also can pay this benefit forward to the customers.
How do you do that?
You cut the cost for those who need to buy your products. As you’re now making more profits without a middleman, your customers should enjoy the benefits too. When the customers have the products from you for less cost, they’ll come to you the next time.
Low price always attracts the customers. You can win customers by offering them lower prices than others do.
Without a middleman, you can price the products as low as you could. And the benefits serve both you and your customers.
Final thought
Middleman is never good for your business. You can always do better when you take out the middleman and do it all by yourself. Don’t keep a middleman when you can go alone.
Going alone and doing it all by yourself serves you better.
It makes you more profits along the line. You get to keep the money to expand your business. Also, you can cut the prices for customers to share the benefits with them too.
Your business will thrive without a middleman. If you can take out the middleman, there’s no reason why you shouldn’t.
