Avoiding The Commoditization Rat Race To The Bottom

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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

Jean-Eric went from competing on price with dozens of shady operators to being one of the only providers of a “farm clean up” service. He went from having lots of competitors to a virtual monopoly on what he sold. When you’re inundated with competitors, it’s time to figure out your Monopoly Control, which we’ll do together in Module six of The Value Builder System. Get started now by getting your Value Builder Score.

 

Check out our full M&A Glossary

 

Visit Jean-Eric’s Website

About Our Guest

Jean-Eric was a born entrepreneur, buying and selling four companies before the age of 31. He has owned and operated a variety of businesses, including a residential painting franchise, several ecommerce websites (retail and wholesale), an industry-leading scrap metal recycling business, several international export companies (commercial, retail and industrial), and more.
On top of his entrepreneurial experience, Jean-Eric has also built an incredibly diverse and powerful resume working for, and consulting with, several companies including Canada’s 4th fastest growing company (2018).