Is There A Niche For You?ByRaymond D. Matkowsky
This past week, I had to have my central air conditioning unit serviced. My usual vendor did not offer the service I needed so I called another that did offer what I was looking for. At the time I also found out that my normal vendor will no longer service R22 Freon calls after the beginning oof 2017.
R22 importation into the United States has been reduced by 15% a year for the last five years and will drop to zero in 2020. Wholesalers are rationing their stock to their best customers and leaving the rest without.
In 2016 the U.S. import quota of R22 is 18 million U.S. pounds. Service demands is still estimated at tens of millions of pounds. Whatever the level, it far exceeds the availability of imported product. The price of R22 has risen from US$30.00 per pound to an average of US$115.00 per pound over the last five years.
The replacement vendor told me that he foresaw the opportunity, seized it, and ordered a ton (2,000 pounds; 907 kg.) of R22 while it was still US$30.00 a pound. Since his competition will be much less, he stands to make a profit of 300% to 400% on each pound while also gaining the clients his competition can no longer service.
This process can be extended to many areas. It certainly may be worthwhile to investigate the gaps in services that are being phased out but still shows a substantial need in the marketplace.
There are many reasons for service phase outs, regulations, new product introductions, business discontinuations, and just plain unprofitable overhead.
There is money to be made in niches!
If you have any further suggestions, do not keep it to yourself. Help your fellow readers!
If you have any questions, comments or suggestions drop me a line at rdm@datastats.com.
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