Avoiding The Commoditization Rat Race To The Bottom
Jean-Eric Plamondon was in the scrap metal business where the stereotypical operator is a shady character buying metal by the ton with a blow torch in one hand and a wad of cash in the other.
Plamondon decided he wanted to do scrap metal differently and discovered farmers were keen to clean up their land. Plamondon offered a full-service clean up wherein a crew would tidy up a farm and dispose of all of the excess waste — including the valuable scrap metal. Plamondon got so good that he was buying farmers’ metal for as little as $3 a ton and was turning around and selling it to a smelter for more than $100 a ton.
It was a license to print money, which is why, when Jean-Eric decided to get out, he was able to sell the business to his employees. In this episode, you’ll discover:
- How to re-position your company to eliminate competitors
- Where to go for advice when you feel overwhelmed
- Why possession is 9/10ths of the law in any negotiation
- The difference between a justice system and a legal system and what this means for your relationship with partners
- How to systematize your business
- What a vendor take-back is and what it means to the value of your company