Niche Staffers Generate Higher Margins

With Thanksgiving coming up, everyone’s thinking about the usual grocery list - mashed potatoes, cranberry sauce, pumpkin pie. But sitting at the top of the bill is always the turkey.

And a lot of turkeys get sold. For smaller grocers, competing in that high-volume, low-margin game is tough, just like it is in staffing.

Back in my grocery days, we faced the same problem. As an independent butcher shop in Chicago, we couldn’t compete with supermarkets selling turkeys below cost as a loss leader. So instead of chasing volume, we pivoted. We offered free-range, locally raised turkeys.  We sold fewer, but made more money, and built a reputation as the go-to shop for quality and expertise. Less volume, higher margins, better customers.

Staffing works the same way. The largest concentration of contract jobs today sit in low-skilled categories: light industrial, warehouse, general labor. Nationals fight over that business and drive margins down. It’s hard for a small or midsize firm to win that race simply by lowering the price.

But you can win by carving out a niche: underserved markets, professional, semi-skilled and skilled roles, industry-specific verticals, or accounts the nationals ignore. Boutique firms that specialize earn better margins because the work is harder, the talent is more valuable, and the client needs real expertise. And when you show up as a solutions-based consultant (not just another provider), clients will happily pay more for better talent, better service, and someone who understands their world.  Even providers of low skilled labor can earn a little more approaching it this way.

And here’s where the right partner matters. I have always worked for a niche lender and service provider that focuses on the staffing industry. That is always the best partner to help you support, grow, and scale your business. Higher advance rates, deeper industry understanding, and a commitment to your long-term success will give you the freedom to focus on what you do best: delivering great people with exceptional service.

Contact me, and I can help secure great financing to scale your business.

Find your niche, deliver quality, and partner with the right people. That’s how independent staffing firms win.

For some ideas on how to approach your customers with solutions, please click this post:

https://www.staffersblog.com/post/as-wages-increase-staffers-provide-a-profitable-solution-to-the-employer