The Most Valuable Entrepreneurial Skill in 2024: Building Local Alliances.
Car damage led to a local shop deal, highlighting the value of local business partnerships
Today I had a little adventure. While driving on the highway, the tire cover on the passenger side of my car got damaged. Of course, I needed to find a replacement piece as soon as possible. My first idea was to search on Google, where I found the piece on a well-known auto parts website here in Mexico. The price seemed reasonable. However, I thought of checking the local stores where I live, Merida, Yucatan, to get it faster and maybe find a better deal.
I called a nearby body shop. They had the piece, and to my surprise, they offered it with a 10% discount. The price was now 10% less than the online price I had seen earlier. I wondered how it was possible that they had it cheaper in store than online and decided to ask. They explained that they had a special deal with the online company as they were their distributors. This agreement allowed them to give a 10% discount to local customers like me.
This experience made me think of my days working in real estate. Just like the online auto parts company needs local stores to reach more customers, property developers need real estate agents to connect with people who prefer to buy houses, land, or apartments in person instead of online. Many people still value face-to-face interactions, especially when making important decisions like buying a property. They want to deal with someone they trust.
Understanding who your partners are is very important. Whether selling auto parts or houses, having strong relationships with local distributors or real estate agents can help a business grow. It might seem like a good idea to sell only online and perhaps make more money in the short term. But building good relationships with local partners can lead to more sales in the long term. It can also build trust with customers.
In my case, I was happy to buy the auto part at the local store. I got a better price, and I could trust that I was getting the right piece. The online company might have earned a little less money with that sale, but it gained trust and more business through its local partner.
Just like in real estate, having good relationships with local partners can create a win-win situation. Developers, real estate agents, and buyers benefit when working together. And in the auto parts business, the online company, local stores, and car owners like me also benefit.
Today's lesson is clear: knowing and supporting the people who help you reach your customers is key to long-term success. It's a smart strategy that can help everyone involved grow together.
How do you think online platforms and local businesses can better collaborate?
